Mortgage Rate Update October 25, 2011

Mortgage note rates are better this morning on worse than expected economic data and more uncertainty regarding the EU debt crisis.

EU leaders have unexpectedly delayed a deadline for agreeing to details regarding the EU bailout fund.  Based on the delay it is clear that major divisions remain between various interests within the EU.  The delay is causing investors to fret over the potential outcome of the ongoing debt saga which is helping mortgage rates to move lower here in the US.

A private research group known as the Conference Board released their monthly report on consumer confidence this morning and it showed a sharp decline.  Bad news for the economy is good news for mortgage rates.

The latest figures for the S&P Case-Shiller Home Price Index were released this morning.  Nationwide the home price index showed modest price gains from July to August.  Here in Portland, home prices were 7.6% lower from a year ago on a seasonally-adjusted basis.

I believe that EU leaders will eventually follow through on their commitment to deliver a large bailout fund which will likely cause rates to rise slightly so I recommend locking in at today’s rates while they’re available.

BTW, I was quoted in this morning’s Oregonian.  You can see the article HERE.

Current Outlook: locking