Mortgage note rates are unchanged this morning.
Pricing on mortgage rates actually worsened yesterday afternoon after Italian Prime Minister Silvio Berlusconi announced that he would resign. Investors somehow interpreted that Superman would fill his role and the European Debt crisis would be solved. Fat chance.
Reality has set back in this morning and Italian Government 10-year notes are now yielding 7.4%.
Portugal and Ireland were forced to seek international support when their 10-year note yields surpassed 7.00%.
Meanwhile, investors are fleeing for “safety” which is driving global capital into the US and helping mortgage rates remain near all-time lows. Currently, the 10-year US Treasury Note is trading below 2.00% which is an important technical level. If the 10-year can close below 2.00% and remain below that level at the open of trading tomorrow this would be a signal that rates could head lower.
Current Outlook: floating as we watch the 10-year US Treasury yield