Mortgage rates are unchanged from yesterday morning although rates did increase during the day yesterday so they are actually improved from the afternoon.
Yesterday’s announcement that European leaders had agreed on a plan to help contain the impact of a Greek debt default was initially met with enthusiasm sending equity markets and interest rates higher.
This morning, the initial punch has worn off and analysts are beginning to dive into the details which is making them realize that significant challenges remain. As one CEO stated, “The implementation challenge is as high, if not higher, that the design challenge.”
Too late for interest rates though. The damage has been done and unless implementation of the bailout plan completely unravels I expect 30-year fixed rate to remain above 4.00% moving forward. The yield on the 10yr Treasury Note closed above the important technical level of 2.30% yesterday and if remains above this level I expect 30yr fixed mortgage rates to remain in the 4.125%-4.375% range.
Current Outlook: neutral as we watch the 10yr Treasury yield