Mortgage rates are higher compared to my last ‘rate update’ on February 9th.
‘Rate Update’ is back after a great vacation on Maui. Unfortunately while I was away rates worsened a bit.
Finance Ministers from across the Euro-zone approved another round of bailout for Greece earlier today. The latest round, valued at about $172 billion, is expected to keep Greece from defaulting next month but as the WSJ pointed out in THIS ARTICLE, significant obstacles remain so stay tuned.
In the near term the announcement is good for the EU economy and as a result interest rates here in the US have crept modestly higher as the flight-to-safety trade unwinds.
Also threatening interest rates is $99 billion in new debt supply from the US Treasury. The auctions kick-off today with $35 billion in 2-year notes. CLICK HERE to understand how government borrowing can impact mortgage rates.
The economic calendar is fairly light this week.
Current Outlook: neutral