Mortgage Rate Update February 7, 2012

Mortgage rates are unchanged this morning.

Rumors out of Europe suggest that Greece is finally getting close to reaching a deal with creditors that would allow the ailing country to avoid default…….for now.  Like previous stories which have broken on the subject there is a lack of details for the markets to digest.

Interest rates in the US appear poised to move higher if indeed Greek officials can announce a plan that would help it avoid default…..for now.  In addition, the US Treasury is set to auction $72 billion in fresh debt supply over the next three days which will make it difficult for rates to improve much.  The auctions kick off today with $32 billion in 3-year notes.

I will shift to a locking position.

Current Outlook: locking bias