Mortgage rates are better this morning.
The G-20 meeting in Toronto concluded yesterday with the world’s richest countries committing to cutting their deficits. In the long run this is good for interest rates. In the near-term analysts are interpreting this commitment to mean governments will cut spending which increases the likelihood of a “double-dip” recession.
On this news investors are further exhausting the “flight-to-quality” trade that has carried rates lower over the previous couple months.
It will be a fairly busy week in terms of economic data. On Friday the all-important jobs report for June will be released.
Current outlook: neutral