Mortgage rates are mostly unchanged this morning.
European finance officials announced yesterday that they would withhold the next round of bailout funds for Greece because they have missed important deficit reduction targets. Most analysts believe this announcement is a temporary effort to pressure Greece into austerity cuts and that they will step in should Greece be on the verge of default.
The fear over the European debt crisis has clearly curtailed the global economic recovery. Goldman Sachs released a strategy note overnight in which they announced they expect slower global growth and “a mild recession in Germany and France and a deeper downturn” in the periphery of the EU. Bad news for the economy is typically good news for mortgage rates.
Although developments in Europe continue to dominate the financial headlines each of the next 3 days brings significant domestic employment data concluding with Friday’s all-important jobs report.
I am switching my outlook to locking.
Current Outlook: locking