Mortgage Rate Update Septembr 14, 2011

Posted on by Evan in Rate Update

Mortgage rates are unchanged this morning.

New economic data and continuing fears regarding Europe are helping mortgage rates remain near all-time lows this morning.

The Labor Department reported earlier today that prices paid by businesses and manufactures held steady last month.  Inflation is the primary driver of mortgage rates so a lack of price increases is good for the prospect of low rates.  In a separate report the Commerce Department reported that retail sales were also flat last month.  As I pointed out in yesterday’s ‘rate update’ weak economic news should help rates remain low.

Finance officials in Europe and here at home are doing their best to calm the nerves of investors who are worried about the ripple effects of a Greek default.  However, the markets are clearly nervous about the financial stability of the region and the implications for the banking sector.  That fear continues to drive investment capital into US-denominated debt securities which is helping rates remain low.

Current Outlook:  floating bias