Mortgage rates are unchanged this morning.
With no significant economic data out today the markets are squarely focused on Europe.
Standard & Poor’s is on a warning spree. They placed 15 European countries on “credit watch negative” late yesterday including France & Germany. This move is often a precursor to a credit downgrade. Today, they added the European Financial Stability Facility (EFSF) to that list. Although this would seem like bad news for the markets and good news for US mortgage rates there has not been much reaction to the news.
This is probably because the markets remain hopeful that European leaders can hash out a new strategy towards reigning in the debt crisis when they meet this Friday in Brussels. I still believe that rates are more likely to increase from now until then than fall any lower.
Current Outlook: locking