Mortgage Rate Update October 20, 2011

Although mortgage note rates are unchanged this morning.

European finance officials continue to discuss options for creating a massive bailout fund for European banks and governments.  As we approach this weekend’s scheduled summit a divide still exists between German and French leaders.  According to reports this morning the summit may be delayed until differences can be resolved.  Should uncertainty persist over a plan it would likely cause rates to drop.

In economic news, this mornings weekly jobless claims were reported in line with expectations (ongoing claims remain > 400,000).  The National Association of Realtors reported that existing homes sales unexpectedly fell last month from the previous month.  However, existing homes sales were up over 11% compared to a year ago.

The financial markets are fairly quiet this morning.  Europe continues to be the primary driver.

Current Outlook: floating