Last week saw mortgage rates move again into all time record low territory, only to retrace higher slightly later in the week. Mortgage rates experienced downward pressure due to the news regarding the JP Morgan trading loss of over $2 billion dollars. This was good for mortgage rates because bad news tends to push investors out of stocks and equities and into bonds.

When bonds have an increase in buyers, it tends to increase their price (supply and demand) with has an inverse effect on mortgage rates. In other words, bad news is good for mortgage rates!

The Week Ahead: It’s All About Europe

The markets have kept a close eye on Europe for a good number of months. The major concern as each country comes forward with its own debt issues is that as these issues spread to countries like Italy and Spain, it gives more credence to a bigger issue with the European Union as a whole. This can and will negatively affect the United States.

As with all bad news coming out of Europe, the latest bombshell that Greece may be ditching the Euro is front and center news on the world stage. How this plays out can absolutely move mortgage rates. The messier it gets, the more downward pressure there will be on mortgage rates. Mortgage rates just may break the new historic lows set last week.

Economic Calendar for Week of May 14, 2012

• Monday - N/A
• Tuesday - Consumer Price Index, Retail Sales, Housing Market Index
• Wednesday - FOMC Minutes, Housing Starts, Industrial Production
• Thursday - Jobless Claims, Philadelphia Fed Survey
• Friday - N/A

Where are Mortgage Rates Now?

We’re in a fast moving market with lots of volatility that can come into play at any given time of the day, depending on which news stories are moving the market. This means rates can and do change many times per day. For up to the minute mortgage rate quotes, please call us directly or request a rate quote using the form above.

In addition to an up to the minute mortgage rate quote, we can also answer any mortgage related questions you might have. Additionally, we can help you understand which program options there are and which ones make the most sense for your needs.