Mortgage Rate Update May 21, 2012
Mortgage note rates remain at all-time low levels.
Fear continues to keep US interest rates at all-time low levels. As Greek citizens prepare to vote in a run-off election on June 17th most analysts now believe that Greece is headed for an exit of the European Union. Leaders of the Group of 8 will meet later this week to discuss how to keep Greece in the EU. Should their meeting shift sentiment in the financial markets it would likely be a catalyst for US interest rates to move higher.
China is doing their part to help curb global fears. Chinese Premier Wen Jiabao stated that his government was prepared to ease monetary policy with the goal of promoting economic growth.
The US Treasury is set to auction $99 billion in debt securities this week (Tuesday-Thursday). With interest rates at all-time low levels it will be interesting to see how much demand these auctions can muster. Weak demand could also cause rates to move higher.
Current Outlook: neutral