Mortgage Rate Update January 9, 2012

Posted on by Evan in Rate Update

Although mortgage note rates are mostly unchanged this morning the accompanying closing costs are slightly less so in fact mortgage terms are improved from Friday..

Concerns regarding the European Debt Crisis persist this morning helping interest rates remain very close to all-time lows.

DARK CLOUDS ARE FORMING OVER EUROPE AGAIN

An internal memo obtained by a German newspaper over the weekend showed that International Monetary Fund officials are pessimistic that Greece can find a way to dig themselves out of their fiscal hole.

Meanwhile, French and German leaders are meeting today to discuss details on a “grand plan” to regulate EU members ability to run up debt in the first place.  Unfortunately, this does little to address the existing crisis.  Later this month officials from all EU countries will meet again to try and hash out a credible plan.

Mortgage rates will have to contend with $66 billion in US Treasury supply this week.  The auctions kick off tomorrow with $32billion 3-year notes.  The US economic calendar is fairly light this week with the bulk of reporting coming Thursday & Friday.

Current Outlook: neutral