Mortgage rates are unchanged this morning.
In the immediate term the fiscal problems in the EU continue to dominate traders’ attention. The fiscal problems in Greece have caused investors to scramble for traditionally “safe” US dollar denominated securities which has helped push mortgage rates lower.
Germany is one step closer to agreeing to a bailout package today after their parliament elected to “fast track” legislation that would commit the country to monetary support. A vote is expected later next week. In my view it’s only a matter of time before a credible plan is passed at which point I expect rates to reverse higher.
Not that anyone in the interest rate markets is paying attention to domestic issues but the US Treasury is set to auction the final piece of the $115 billion note supply for the week today. We continue to expect strong demand.
Current outlook: locking bias