Mortgage rates are unchanged today.
Political unrest in Egypt is causing concern amongst investors. Overnight the Egyptian government shut down the internet and cell phone coverage for much of the nation in an attempt to calm the rising tide of protesters. In response, investors are seeking “safe-haven” investments this morning which is helping to keep mortgage rates low here in the US.
The Commerce Department’s initial report on 4th quarter economic growth showed that the economy grew at a 3.2% pace for the last 3 months of 2010. This was slightly less than economists were expecting. Also embedded in this report is the Fed’s favorite gauge of inflation which showed that inflation pressures remain tame. Inflation is the primary driver of food and energy prices so this is good news for mortgage rates (for now).
At this point I am going to shift my outlook to floating to see if the geopolitical tension in the Middle East can help push yields down a little bit in the near-term.
Current outlook: floating