Mortgage rates are slightly better this morning.
Worries over global growth are helping interest rates here in the US this morning.
Two separate reports regarding China’s economy showed that activity may be slowing by more than expected.
In Europe, the new Greek bonds, which were a part of the bond-swap deal last week, opened trade at a steep discount reflecting the ongoing pessimism surrounding Greece’s ability to dig themselves out their financial hole. As long as uncertainty reigns over Europe’s financial stability US mortgage rates should remain relatively low.
Looking ahead for the week, the US Treasury is scheduled to auction $66 billion in Treasury notes and bonds (CLICK HERE to understand how government borrowing can impact mortgage rates) starting with $32 billion in 3-year notes today. The Federal open Market Committee is scheduled to deliver its latest monetary policy statement tomorrow. Their comments can always move the markets. Lastly, there is a healthy batch of fresh economic news that kicks off tomorrow with retails sales and concludes on Friday with inflation data. I will shift to a neutral position.
Current Outlook: neutral