Mortgage rates are priced slightly better this morning.
Fears over a Greek debt default intensified overnight after EU finance officials were unable to create a plan over the weekend to save the ailing country. Unless Greece is able to find additional austerity cuts in it’s government budget they will miss a round of bailout money which would likely trigger default next month.
In my view a Greek default is imminent. The question is not whether or not Greece will default on its debt. The question is when? and how far will the dominoes fall?
No matter, the stock market here at home is trading lower on these fears which is helping mortgage rates.
Looking ahead for the week, this weeks economic calendar is filled with housing data. The housing market continues to look weak thanks to inventory from bank foreclosures and distressed sales. The data won’t reflect it but good homes in good neighborhoods that are priced right are still moving quickly (at least in Portland, OR).
On Wednesday the Fed will announce it’s latest monetary policy decision. A majority of analysts now believe the Fed will announce plans for “operation twist” where the Fed sells shorter duration securities and reinvests the money in longer-duration securities which should help mortgage rates.
Current Outlook: neutral