Although mortgage note rates are unchanged from last Thursday pricing has improved so in fact the overall rate environment is better to start the week.
Greece is back in focus for the financial markets today. Although Greece is not yet technically in “default” they are teetering on the edge. Negotiations between Greece and its creditors have broken down just 24 hours before the ailing country is scheduled to make a 1.6€ billion payment.
Greece has implemented strict capital controls in order to keep its financial system from crashing. The Greek stock market is closed, bank branches are closed, and ATM’s are open but Greek citizens are limited to withdrawing 60 euros per day (~$67).
The chaos in Greece has ignited a “flight-to-safety” in the financial markets. As I explain HERE this is a good sign for US mortgage rates.
For the time being mortgage rates will likely respond to developments in the Greek saga. However, it is a very busy compressed economic calendar this week (the financial markets are closed on Friday).
In housing news the National Association of Realtors reported that pending home sales hit a 9-year high last month. Tomorrow S&P will release the latest reading on the Case-Shiller Home Price Index.
It’s jobs week so we’ll get the ADP, initial claims, and the all-important jobs report later in the week. We will be keeping a close eye on wage growth in this Thursday’s jobs report as that is the missing piece of the inflation puzzle which will force the Fed’s hand in raising rates.
Current Outlook: floating