Mortgage Rate Update January 11, 2012

Posted on by Evan in Rate Update

Mortgage rates are mostly unchanged today.  FHA mortgage rates have improved.

Like a toddler that cries one minute and laughs the next sentiment continues to sway back and forth regarding the European Debt Crisis.

INVESTORS ARE CRYING OVER WEAK GERMAN ECONOMIC NEWS THIS AM

If you’ll recall back to yesterday investors grew optimistic about the outcome there.

Today, investors are fretting, yet again, over a report out of Germany showing that economy contracted in the 4th quarter of last year.  Germany has long been the main economic stalwart of the Euro-zone.  If their economies continue to slip it would certainly darken the outlook for the rest of the region.

Uncertainty over Europe is helping the 2-year old “flight-to-safety” trade which has helped US mortgage rates remain at all-time low levels for an extended period of time.  The US Treasury will auction $21 billion in 10-year notes today.  Assuming the auction is met with strong demand rates should not be impacted.

Current Outlook: neutral