Mortgage Rate Update Feb 9th, 2012

Posted on by Evan in Rate Update
PAPADEMOS ANNOUNCED THAT GREECE HAS AGREED TO FURTHER CUTS WHICH WIL PAVE THE WAY FOR ANOTHER BAILOUT

Mortgage rates are priced slightly worse this morning.

Greece’s Prime Minister Lucas Papademos announced today that the major political parties have agreed to additional austerity cuts which are a condition for Greece’s creditors to accept discounts making it possible for the ailing country to stave off default…..for now.  Good news for Greece is bad news for US interest rates.

Also pressuring rates higher is a better than expected weekly jobless claims report.  The report showed that the number of people filing for unemployment benefits declined by 15,000.  Analysts had expected a modest increase.  Good news for the economy is bad news for mortgage rates.

The US Treasury will auction off the final leg of its $72 billion in debt sales for the week.  Today, they will deliver $16 billion in 30-year bonds.  The combination of long duration debt supply AND better than expected economic news will make it tough for interest rates to improve in the near term.  I will maintain a locking position.

Current Outlook: locking