Mortgage Rate Update March 22, 2011

Although mortgage note rates are unchanged this morning the accompanying closing costs are slightly lower so in fact the rate environment has improved since yesterday.

It’s been only a week since we last focused on the European Debt Crisis and its making headlines again.  Did you miss it?  Yields on Spanish & Italian government bonds rose today after it was reported that economic activity across the Euro-zone declined for a 3rd straight month.  Economic growth is necessary for cash-strapped Euro-zone countries to avoid default.

Furthermore, the Chinese government reported that manufacturing activity declined in March for a 4th straight month.  Here at home weekly jobless claims declined again last week which is a good sign for the economy.

If concerns over the European debt crisis reemerge and grow more intense then clearly we’d expect mortgage rates to decline.  It might not be a bad idea to float here and see if rates move lower.

Current Outlook: floating