Mortgage rates are unchanged this morning.
Uncertainty over the ability for the Euro-zone to recover from the debt crisis is helping mortgage rates this morning and hurting stocks. A top German finance official with the European Central Bank resigned his position overnight.
The surprise departure has analysts concerned about the internal divisions inside the ECB during a critical time.
With greater uncertainty investors are engaging in a “flight-to-safety” where they sell “risky” assets (i.e. stocks) and reinvest the capital in “safer” places (i.e. bonds). This helps keep rates low.
President Obama’s much anticipated jobs speech is still being analyzed by investors. The $447 billion stimulus plan is unlikely to make it through Congress in its current form so the markets are considering what changes may be made during political negotiations and how those changes may impact the economy.
Current Outlook: neutral