Mortgage rates are unchanged today.
Greece is dominating the headlines again today. Yesterday the financial press was touting that the interest markets had priced in a 78% chance of a Greek default. Today, it is being reported that other European nations will come to their rescue. Should Greek default on its debts it could easily create a domino effect that would push Portugal, Spain, and Ireland into default as well. The uncertainty surrounding this situation is helping to create demand for “safe” US-denominated fixed income assets; helping to keep rates low here at home.
This morning the Conference Board’s index of leading economic indicators for May rose by .8%, more than economists had expected. This relatively positive report is being weighed against consumer sentiment data which came in worse than expected.
The bottom line is that the economy appeared to be on track during the first few months of the year but then gas prices started to rise which has created some volatility. Interest rates will remain low so long as uncertainty surrounds the Greek fiscal situation and the economy appears fragile.
Current Outlook: neutral