Mortgage Rate Update June 10, 2011

Although note rates are unchanged this morning the closing costs required to obtain these rates are higher.

Interest rates here in the US worsened yesterday but are recovering this morning thanks to uncertainty regarding Greece’s debt problems and a weaker equity market.

European finance officials continue to argue publicly over the best approach to resolving Greece’s debt problems.  All the while no formal action is taking place which leaves investors uncertain about the outcome.  This has encouraged a flight-to-safety into US-denominated debt securities including mortgage-backed bonds.

US stocks are trading sharply lower this morning following a report which showed higher than expected import prices.  Although recent inflation data has been anemic traders are concerned about stagflation which is where there is low economic growth coupled with inflation.

The economic calendar heats up next week.  Until then I expect interest rates to remain stable.

Current Outlook:  Float