Mortgage Rate Update December 9, 2011

Mortgage rates are unchanged this morning.

European leaders have agreed on a new version of a “grand plan”to help stave off the debt crisis.

The new agreement calls on EU governments to operate with lower deficits and greater austerity.  It also places power with the European Court of Justice to hold countries accountable.

Although stocks around the globe are trading higher on the announcement European bond yields remain elevated so clearly not all investors are convinced that this new plan will offer a solution.

The bottom line is that there is still great uncertainty regarding the ongoing debt crisis in Europe.  The new agreement amongst EU countries should prevent countries from racking up unsustainable levels of debt in the future but falls short of offering a credible solution to the current crisis.

I will maintain a locking bias through the weekend and reevaluate on Monday.

Current Outlook: locking