Mortgage rates are mostly unchanged from last Wednesday.
In case you missed it, the big financial news over the 4-day holiday weekend was Dubai’s announcement that they would delay payments on $60 billion in debt to those who helped finance their outlandish developments. This morning PIMCO’s CEO (PIMCO is the world’s largest bond investment manager) stated that Dubai’s announcement may be an indication of things to come unless efforts are made to create employment. Dubai’s announcement drove investors into less-risky holdings pushing yields lower on Friday.
This morning, investors are unwinding the “flight-to-safety” trade from Friday thanks to better than expected manufacturing data out of the mid-west region.
However, many analysts believe that yields on long-term debt including mortgages will remain low through the remainder of the year as money managers shift their asset allocation into fixed income securities to protect their annual performance from a possible correction in stocks.
Current outlook: locking