Mortgage Rate Update June 16, 2011

Although notes rates are the same today compared to yesterday the closing costs needed to obtain these rates are better.

Greece is back in the forefront of the interest rate markets this morning as fresh new fears over the ability of the Greek Government to meet its debt obligations are creating a “flight-to-safety” which is helping rates here in the US to remain low.  It seems like this storyline continues to see-saw back in forth so I won’t hang my hat on current sentiment.

As protesters battle with authorities in Greece it remains unclear if the government will be able to meet its debt obligations

Economic data released today showed mixed signals.  Weekly jobless claims declined by more than analysts had expected.  Although this is temporarily good news the overall level of individuals receiving jobless benefits remains troubling.

Figures for home & apartment construction in May were released this morning and also came in better than expected.  However, the overall pace of activity remains low.

A monthly survey of manufacturing  in the Philadelphia Fed region showed contraction in economic activity similar to yesterday’s Empire Manufacturing index.  This has analysts concerned that the economy is headed for a double dip and bad news for the economy typically is good news for mortgage rates.

Interest rates are getting pulled in both directions this morning so for now I will maintain a neutral position.

Current Outlook:  neutral

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.