Mortgage rates are mostly unchanged this morning.
Despite the relatively upbeat jobs report on Friday which would normally push yields higher, interest rates remain at 4-month lows.
Earlier this morning Standard & Poor’s downgraded the credit rating of Greece to B- which is bringing the European debt situation back into the spotlight. This news is driving investment capital into relatively “safe” US-denominated debt helping to keep rates low.
Looking ahead for the week the US Treasury is scheduled to auction $72 billion in 3-year, 10-year, and 30-year treasuries so we’ll have to watch how the additional supply will impact the market.
Technically mortgage rates remain vulnerable so I will maintain a locking bias.
Current Outlook: locking bias