Mortgage Rate Update November 1, 2011

Posted on by Evan in Rate Update

Mortgage rates are better again this morning.

Any guesses on how he'll vote?

In a completely unexpected development the Greek Prime Minister announced earlier today that he would let Greek voters decide on whether or not the country should adopt steep austerity measures in favor of receiving bailout funds or allow the country to default.  The announcement is sending shock waves through the financial markets as investors seek “safety” in US denominated debt securities including mortgage-backed bonds (MBS’s).  Equity markets around the world are trading lower helping interest rates to improve.

Also encouraging the “flight to safety” is news that regulators are investigating the books of the financial brokerage MF Global.  Yesterday the company announced that it would file for bankruptcy protection.  Auditors claim that up to $100 million of customers’ assets are unaccounted for.

Uncertainty and volatility are back with a vengeance on a day when the Federal Open Market Committee begins a 2-day monetary policy meeting.  We will hear what they have to say tomorrow.  In the meantime we maintain the floating position that we shifted to yesterday.

Current Outlook: floating