Rate Update May 20, 2010

Mortgage rates priced slightly better again this morning.

Mortgage rates are now at the lowest level since August of 2009 making it a great time to buy a home or lock in a rate on a refinance.

Why are rates so low?

As the WSJ reported this morning inflation is at a 4 decade low.  Inflation is the primary factor that drives mortgage rates so mortgage rates are benefiting.

Furthermore, investors are growing more and more concerned about Greece and the repercussions of a Greek default.  Following yesterday’s unilateral move on the part of Germany the EU looks divided.  It will certainly take a coordinated effort on the part of all EU countries to fix the debt crisis.  This growing fear is further sparking the flight-to-quality trade which has helped drive yields lower in the US.

Current outlook: neutral

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.