Rate Update March 2, 2010

Most mortgage rates are unchanged this morning.

The ongoing Soap Opera that is the Greek fiscal crisis will take another turn tomorrow when it releases its latest version of a plan to shore up its finances.  Should the plan calm investors’ nerves then we are likely to see the “flight-to-quality” trade unwind which would pressure mortgage rates higher.

Interestingly enough Greece’s budget gap is currently estimated to be 12.7% of GDP which their creditors are concerned about.  In case you’re wondering Great Britain’s is also at least 12% and the US’s budget deficit is expected to be 10.6% this year.  So our financial house is not exactly in order either.

There isn’t much in the way of economic news today.  On Thursday the US treasury will announce it’s auction schedule for next week and on Friday we get the all important jobs report.

Current outlook: locking bias