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Triangle Business Today

How low will mortgage rates go?

Posted January 13, 2012

What a wild start to Friday. Talks of a potential S&P Downgrade to the Eurozone has pushed investor funds into Treasuries this morning, causing yields on the 10-year to drop to 1.85 by 10 a.m. – putting additional downward pressure on Mortgage Rates. In general, global economic uncertainty is good for Treasury Prices, which help to lower yields and therefore help drive Mortgage Rates lower as well.

The University of Michigan’s Consumer Sentiment Report came out strong this morning, blowing past expectations with a reading of 74 versus the expected number of 71.5. However, the markets essentially ignored this positive data, and continued focusing on Eurozone concerns.

Discussion on the potential of QE3 has surfaced again – with more focus being given to that possibility sometime this spring. Speculative discussion at this point, but we could continue to see mortgage rates decline even further if QE3 and Europe continue their role in the economic spotlight.

Stay tuned everyone – it’s going to be an interesting spring for housing here in the Triangle!

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About this Blog:

Jeremy Salemson, CEO of Corporate Investors Mortgage Group, blogs about economic trends and data and their impact on Triangle business. Each week, he interviews a Triangle-area business leader for a personal look at the local economy.