Mortgage Rate Update January 10, 2012

Posted on by Evan in Rate Update

Mortgage rates are unchanged this morning despite improved sentiment in Europe.

Investors turned optimistic regarding Europe today thanks to a variety of events which is threatening to push mortgage rates in the US higher.  Fitch Ratings service announcedthat France would not see its credit rating downgraded this year unless the economy worsened.

THE FOCUS REMAINS ON EUROPE THIS MORNING

Also in France, industrial production improved by more than expected in November.  German Chancellor Angela Merkel is currently meeting with officials from the International Monetary Fund to discuss options regarding Greece’s bailout.  As I’ve stated time and time again on this blog, Greece will default on it’s debt.  The only question is how significant the collateral damage will be across the rest of the EU.

No significant economic data is out today here in the US.  The US Treasury will auction $32 billion in 3-year notes so we’ll be watching the level of demand.

Mortgage rates have not increased in response to a better mood in Europe.  I would recommend locking at these lows in the near term.

Current Outlook: locking bias