Rate Update April 16, 2010
Mortgage rates are slightly better this morning.
Greece’s financial woes continue to help support low mortgage rates here in the US. In a storyline that takes a new twist and turn each day, EU leaders have announced that a long-term aid package IS NOT imminent. This has investors fleeing foreign debt investments in exchange for “safer” US-denominated assets. The additional demand is helping to keep yields low here. At some point though Greece will get through this and this “flight-to-quality” trade will unwind.
Stocks are trading lower this morning on disappointing earnings from American Express & General Electric. A weak stock market often supports the bond market which is good for mortgage rates.
From a long-term perspective I still think it is wise to lock in rates. However, if stocks continue to trade lower we may see mortgage rates improve even more in the next day or so.
Current outlook: floating