Mortgage Rate Update March 25, 2013

Posted on by Evan in Rate Update

Mortgage rates are unchanged this morning.

Stocks are starting the day higher, which is putting upward pressure on mortgage rates, on a bailout deal for Cyprus.

CYPRUS HAS SECURED A BAILOUT WHICH IS LIKELY TO PUT UPWARD PRESSURE ON MORTGAGE RATES.
CYPRUS HAS SECURED A BAILOUT WHICH IS LIKELY TO PUT UPWARD PRESSURE ON MORTGAGE RATES.

 The small island nation reached a last minute deal with creditors that is taking the wind out of the “flight-to-safety” trade which helped mortgage rates improve by ~.125% last week.

With fears over the European debt crisis put back to rest (for now) focus will shift back to the economy this week.  The economic calendar is full this week with significant reports scheduled for release Tuesday through Friday.  On Tuesday and Wednesday we’ll get housing related data from the Case-Shiller home price index and pending home sales from the National Association of Realtors.  On Thursday and Friday macroeconomic data will be in focus with GPD and personal income numbers.  All the while the US Treasury is scheduled to auction $99 billion in new debt issuance.

At the start of the week the outlook for mortgage rates is not favorable.  With Cyprus obtaining a bailout investors are less likely to seek “safety” in the United States debt market.  Furthermore, the economic calendar is full this week and assuming that the data continues to shows signs of improvement it is more likely that rates will worsen this week as opposed to improve.

Current Outlook: locking

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.