Rate Update June 25, 2010
Mortgage rates are priced slightly worse this morning.
There were no new headlines in the news yesterday afternoon but bond prices finally reversed on technical trading patterns. I had grown concerned about this on Wednesday and had shifted my outlook to “locking” in the near term.
This morning first quarter GDP growth was revised lower by the Commerce Department. On the news stocks are trading lower which is helping to support bond prices.
The outlook for the Greek fiscal crisis quietly continues to deteriorate. The cost of insuring Greek default against default has now surpassed 11% (in other words, it would cost an investor $11+ to insure $100 of Greek debt). As long as there is fear surrounding European debt US interest rates should remain low.
Next week is a busy one for economic news. I expect some volatility.
Current outlook: neutral