Mortgage rates are unchanged this morning.
It’s a new day but the same story. The financial markets have been trading on thin volume as investors stay focused on developments (or lack thereof) in the debt-ceiling debate. Will lawmakers find a compromise by August 2nd? Will credit ratings agencies downgrade US debt? Both of these questions are being talked about on every major news outlet. The bottom line is that interest rates have yet to make any significant moves in anticipation of any outcome.
A German finance official warned fellow countrymen that the EU debt crisis was far from over. Although the US markets are largely ignoring this news the Euro-zone will likely reenter investors paradigm once the debt-ceiling is resolved. If you’ll recall, uncertainty regarding the fiscal stability of Euro-zone countries typically helps to pressure rates lower here at home.
In economic news, Durable Goods orders unexpectedly declined last month according to a report out earlier from the Commerce Department. The markets are largely ignoring the news. The US Treasury is back on the auction block today with $35 billion in 5-year notes. Yesterday’s auction went relatively well considering the uncertainty surrounding the debt-ceiling.
Current Outlook: locking bias