Mortgage Rate Update February 24, 2012

Mortgage rates are priced better this morning.  Our shift to a floating position on Wednesday has paid off thus far.

The financial markets are moving sideways this morning as investors digest a mixed bag of economic news.

The University of Michigan Consumer Sentiment report was released and showed that US consumers are slightly more optimistic than had been expected.  Whether that optimism will translate into increased consumer spending remains to be seen but for now the report is being accepted as good news.

For the first time in 5 months sales of new homes declined in January according to the Commerce Department.  However, the Commerce Department also revised higher previously released numbers for December.

Prices at the gas pump continue to rise stoking inflation fears and making it hard for interest rates to improve.

There is nothing new to report from Europe.  For now Greece remains solvent but longer-term questions remain.

Current Outlook: floating