Mortgage rates are priced modestly worse this morning.
A sense of calm is the “emotion of the day” surrounding the Greek fiscal crisis so far today. It was reported earlier this morning that the EU’s GDP was slightly better than expected for the first quarter. Better economic conditions improve the probability that the Greece will be able to meet its debt obligations.
However, despite the stock markets comfort with the Greek situation the gold market is not feeling quite as confident. In the past couple weeks gold prices have returned to all-time highs. This is a sign that many investors are betting on the fact that the financial crisis will continue to spread.
The safe play is to lock in these low rates. However, based on the volatility we’ve seen in the past few days I wouldn’t be surprised to see rates improve.
Current outlook: neutral