Mortgage rates are unchanged this morning.
With a very light economic calendar this week developments in Europe will command all the attention of the financial markets. What’s happening in Europe?
On Friday, EU leaders are scheduled to meet in Brussels for another summit and another round of talks regarding the future of the Euro Zone. Some analysts are hopeful that a new agreement will be reached that would prevent the crisis from spreading. If this does take place then it is likely mortgage rates will move higher. Each of the past couple times these dates have approached mortgage rates move slightly higher then the markets lose confidence in the plan and rates retreat.
In Italy, the new technocratic government unveiled a 3-year plan to help improve the country’s fiscal condition. Italy’s Parliament is yet to approve the measures but the markets are welcoming the plan as Italian bond yields have fallen.
So far sentiment regarding Europe is good which is not a welcome sign for mortgage rates. I will remain in a locking position as I believe the likelihood of rates rising outweighs the possibility of them moving lower.
Current Outlook: locking