Mortgage rates are slightly better again today.
Mortgage rates are knocking on the door of all-time low rates again. In addition to weakness in the economic recovery here in the US, investors have renewed concern over the financial stability of the Euro-zone.
The European Central Bank reactivated policiesdesigned to support banks in the Euro-zone over night.
The move is being interpreted as an admission that the financial stability of the region is uncertain. Investors dislike uncertainty which is why they are investing capital in US-denominated debt securities, including mortgage-backed bonds, helping to push yields lower.
Weekly jobless claims declined last week but not enough to improve the general outlook on the economy. Tomorrow the all-important employment report will be issued by the Bureau of Labor Statistics. Expectations are for 75,000 new private sector jobs and for the unemployment rate to tick lower to 9.2%. Last month the report disappointed investors.
Stocks are off in early morning trading. The S&P 500 is close to 10% lower from recent highs. Momentum is clearly on our side and I will remain in a floating position until we see this trend break.
Current Outlook: floating