Mortgage Rate Update March 22, 2011

Mortgage rates are priced slightly worse this morning.

Concerns over the nuclear power plants in Japan have eased over the past 24 hours even though the situation is still not in total control.  With less uncertainty rates have risen modestly.

There are still a lot of question marks regarding Libya & other Middle Eastern countries.  Allied forces have been attacking Libyan military targets over the past 48 hours creating support for the opposition.  In other Middle Eastern & North African countries such as Yemen, Syria, and Bahrain protests are mounting which is putting pressure on oil prices which can have inflationary implications.

Predicting the direction of interest rates is very difficult when we’re dealing with these sorts of issues.  But, the longer-term outlook has not changed.  Inflationary pressure is building around the globe and the US economy is gradually recovering.  Therefore, I will remain in a locking position.

Current outlook: locking