Mortgage Rate Update January 4, 2012

Posted on by Evan in Rate Update

Mortgage rates are mostly unchanged today.

I apologize in advance.  It’s only the second trading day of the year and it already feels like Groundhogs Day.  Europe is driving the interest markets again this morning.

The European Central Bank (ECB) reported that European banks deposited a record amount of money with them overnight last night.  In addition, short-term emergency borrowing from troubled institutions remains high.  This is a signal that European banks are seeking safety which may mean that the system is more troubled than previously thought.  Bad news for Europe is good news for US mortgage rates.

News out of Europe is overshadowing US economic data again.  The Commerce Department released figures on factory orders in November.  The report showed factory orders grew in line with expectations.

We don’t expect much volatility for the rest of the day.  Tomorrow we’ll discuss Friday’s jobs report and the impact it may have on mortgage rates.

Current Outlook: neutral

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