Mortgage Rate Update September 27, 2011

Posted on by Evan in Rate Update

Mortgage rates are slightly worse again this morning.  I don’t get it right all the time but we did switch our outlook to locking on Friday and since then rates have worsened.

IS THERE A PLAN?

Why?  There is renewed optimism regarding the outcome of the European Debt crisis.  Rumors are swirling this morning that European finance officials have agreed on a framework for a super-bailout fund that would prevent Greece from defaulting and other European countries and banks from going into a tailspin.

Over the past few weeks US interest rates have benefited from a global “flight-to-safety” where investors have parked their capital in the US, accepting lower interest rates, instead of risking their money in Europe.  With sentiment reversing this morning the opposite is taking place.

The S&P Case-Shiller home price index posted a fourth straight monthly gain in August according to the report released earlier this morning.  However, on a year-over-year basis home prices are lower.  In Portland home prices increased 1.0% from July to August but were 8.0% lower from August of 2010.

Current Outlook:  locking bias