Mortgage Rate Update January 23, 2012
Mortgage rates are steady this morning after rising .125% last week.
European leaders are meeting today in Brussels to try and hash out fresh ideas for how to prevent financial catastrophe. Meanwhile, the International Monetary Fund chief warned that if EU leaders are unable to generate effective policies it could result in, “a 1930s moment.”
ACCORDING TO IMF, EU LEADERS NEED TO COME UP WITH A PLAN TO AVOID A "1930s MOMENT."
The meat of the domestic economic calendar kicks off Wednesday when the Fed will deliver it monetary policy statement. It’s widely expected they’ll leave existing policies in place but their comments about the economy could move the markets.
Mortgage rates will have to complete with $99 billion in new US Treasury supply which kicks off tomorrow when the Treasury will auction $35 billion in 2-year notes.
Rates have migrated .125% higher from a week ago but there is no reason to believe they’ll move sharply higher as the problems in Europe persist with no quick resolution in sight. However, the US economy is showing signs of recovery so there is also not a compelling reason to believe rates will move lower. I will maintain a neutral position.
Current Outlook: neutral
Posted: January 23rd, 2012 under Rate Update.
Tags: jan 23 2012 MBS, jan 23 2012 mortgage rates, jan 23 2012 rate outlook, jan 23 2012 rate update