Mortgage Rate Update October 3, 2011

Posted on by Evan in Rate Update

Although note rates are unchanged this morning the associated closing costs are slightly less so overall mortgage rates have improved modestly..

Mortgage rates have achieved the all-time low levels set a little over a week ago again on renewed fears about Greece.

THE GREEK PRIME MINISTER MEETS WITH EU OFFICIALS OVER THE WEEKEND

The Greek Government acknowledged over the weekend that it would miss deficit targets necessary to receive bailout funds from other EU nations.  EU finance officials are meeting today to discuss how to handle the issue.  As I’ve said all along.  It’s not a matter of “If” Greece will default.  The question lies in how severe the collateral damage will be through out the rest of the EU.

Here at home we actually have some positive economic news to share!  The Institute for Supply Management’s (ISM) monthly read on manufacturing activity came in a little better than expected.  In addition, the Commerce Department reported that construction spending grew more rapidly last month than was expected.

Looking ahead, the economic calendar is fairly steady all week and concludes with the all-important jobs report.  In the meantime I expect sentiment from Europe to drive mortgage rates.

Current Outlook:  floating