Mortgage Rate Update May 8, 2012
Mortgage rates are priced slightly better this morning.
The financial markets are squarely focused on Greece and the European debt crisis this morning. Political turmoil has spread across Greeceas the various political parties scramble to build a coalition government.
The uncertainty has pushed the Greek 10yr note to 23.01% and increased the likelihood that they will eventually default on their debt and possibly exist the European Union.
The anxiety over Europe is pushing US stocks lower this morning. The S&P 500 is down around 1.00% and the Dow Jones Industrial Average is off by about .80%. What’s bad for stocks is often good for interest rates.
The US Treasury is set to auction $32 billion in 3-year note supply later today. Demand is expected to be strong so I don’t anticipate mortgage rates to be impacted.
Current Outlook: floating