European uncertainty, weak consumer sentiment help mortgage rates
Posted February 10, 2012
What a difference a day makes.
Yesterday it seemed as though Greece had accepted an austerity package which sent bond yields heading north. Today, Greek protestors are causing continued uncertainty around their debt crisis, and along with the S&P downgrading 34 of 37 Italian Banks, we’re seeing a reversal for Treasury Prices which has pushed mortgage rates down today.
Volatility will likely remain until there is consensus regarding Greek and other EU Debt concerns.
Here in the US, a weaker than expected University of Michigan’s Consumer Sentiment Report also lent a hand to higher bond prices and improving mortgage rates. The index dropped to 72.5 from 75 as Consumers seemingly are focused on higher gas prices, putting a damper on some of the renewed momentum we’ve seen in the early part of 2012.
Have great weekend everyone!