Mortgage Rate Update October 17, 2011

Posted on by Evan in Rate Update

Mortgage rates are unchanged from Friday.

Weaker than expected domestic economic news has failed to help mortgage rates improve so far today.  The Fed’s read on manufacturing activity in the New York region showed a 5th straight month of contraction.  The next  three days will bring a healthy dose of new economic data including two measures of inflation & housing data.

Investors continue to focus on Europe.  Mortgage rates have increased by .25%-.375% over the past couple weeks on optimism that European leaders would announce a “grand plan” to help curb the risk of financial contagion.

IT SEEMS LIKE THE EU DEBT CRISIS MAY NEVER END

European finance officials are scheduled to meet this weekend and are expected to agree upon details of this so-called “grand plan”.  However, a spokesman for the German Chancellor told reporters overnight that the markets should temper their expectations for such a plan.  This has investors worried that the ongoing debt saga will continue.

I am going to recommend floating for another day to see if sentiment completely shifts following these new comments.

By the way, in case you missed it I was quoted in this Sunday’s Oregonian.  You can view the article HERE.

Current Outlook: floating