Mortgage Rate Update February 14, 2013

Most mortgage note rates are unchanged this week but associated closing costs have modestly increased.

Stocks closed lower yesterday and are starting the day lower today.  Is the stock market due for a correction as I touched on Monday?

It hasn’t rolled over yet but many analysts think we are on the cusp of a decline in stocks which would help mortgage rates.  It’s important to note that no one knows for sure what will happen and often times general consensus is wrong.

New economic data out of Europe shows that the French and German economies both contracted in the 4th quarter of last year leading investors to worry about the continent’s ability to escape further damage from the debt crisis.  Bad news for Europe is good news for US interest rates.

Despite this interest rate friendly news long-term interest rates remain .25%-.50% off all-time low levels.  What this tells me is that even though near-term economic concerns are valid investors still know that US Treasuries are likely to experience rate increases in the long-run which will make it hard for rates to improve much from these levels.

Current Outlook: floating