Mortgage Rate Update March 16, 2011

Mortgage rates are unchanged this morning.

The market’s attention remains focused on the developments at Japan’s Fukushima Daiichi nuclear power plant.  It is unclear at this point whether or not Japanese officials will be able to prevent wider-spread radiation.  Furthermore, analysts are still debating the longer-term economic implications of the disaster.  Our thoughts & prayers continue to go out to those affected and for the brave workers who continue to occupy the power plant.

In another part of the world fighting is ongoing in Libya and in Bahrain government forces have fought off protesters in that nation’s capital.

In economic news inflation reading came back worse than expected in the US & in Europe raising concerns about price pressures.  According to the Labor Department prices at the wholesale level of our economy jumped by 5.6% on a year-over-year basis last month.  When you back out food & energy prices the reading was more tame.  In Europe recent inflation readings are at 2-year highs.  Inflation is the primary driver of mortgage rates so this news is concerning.

The circumstances in Japan make it difficult to recommend a locking or floating position so I will remain in a neutral stance.

Current outlook: neutral