Mortgage rates are unchanged this morning.
Interest rates continue to take direction from Europe. European Central Bank President Mario Draghi warned that substantial downside risks remain for the Euro-zone as a result of the ongoing debt crisis. Meanwhile, EU leaders were holding emergency talks in a last ditch effort to coordinate a $200 billion loan from the International Monetary Fund to help stabilize the region. 
Most analysts don’t believe they’ll be able to reach an agreement but if they do it would likely pressure rates higher.
The US Treasury will auction $99 billion in debt this week, starting with $35 billion in 2-year notes today. Demand for US debt has been strong as of late and so long as that trend continues mortgage rates should be unaffected by the additional supply.
In housing news, the National Association of Home Builders reported that its index that tracks the general mood of builders reached its highest level since May of 2010. Aside from Europe, the housing sector continues to be one of the major anchors on the domestic economy so any signs of life are encouraging.
Current Outlook: neutral