Weekly Update
Mortgage rates again moved downward as European debt concerns continued to mount. In addition to
Greece’s issues, Spain saw its debt downgraded last week. All of this continues to drive a major
international “flight-to-quality” with US treasuries seen as one of the safest places to stash money.
Economically, our recovery does appear to be gaining some traction. While GDP was adjusted down
slightly, we still have significant strength in manufacturing. Additionally, government stimulus has
kicked home sales higher, with hopes that it can continue to hold its own without more intervention.
While consumer moods have a long way to go to recovery, we’re seeing better readings.
Mortgage rates could easily move either way this week, or not at all. Analysts are expecting to see
both ISM indices remain strong, and consensus estimates are calling for 500,000 new jobs to have
been created last month. However, even with great domestic economic news, we could have
continued concerns over Europe’s debt situation holding mortgage rates low.