Mortgage Rate Update November 22, 2011

Mortgage rates are unchanged again today.

Europe continues to dominate the market’s attention. Yields on government debt have risen significantly for Italy, Portugal, Spain, and even France as investors bail out of those countries in favor of “safer havens” such as the US.

Despite the heightened demand for US-denominated debt securities mortgage rates have not managed to break below current levels.  Technical trading patterns are preventing rates from moving lower.

In domestic economic news the Commerce Department lowered its initial estimate of 3rd quarter Gross Domestic Product (GDP) by more than expected today.  They originally estimated that the GDP grew by a 2.5% clip in the 3rd quarter but after revising the data they lowered that to 2.0%.

I don’t expect any major moves in the market in the near term so I will shift my outlook to floating.

Current Outlook: floating