This morning, mortgage rates are improving largely due to drama that’s taking place in Europe with the IMF and the island of Cypress. The IMF is taxing (some say stealing) from depositors causing a run on the banks.
Remember, mortgage rates are based on mortgage backed securities (bonds). And when investors will seek the safety of bonds over the potential higher return found with stocks, causing mortgage rates to improve.
The FOMC ends their two day meeting on Wednesday.
As I write this post (7:45 am on March 18, 2013) the DOW is down 41 points, however it was down as low as 110 points earlier this morning.
Here are some of the scheduled economic indicators for this week that may impact the direction of mortgage rates:
- Tuesday, March 19: Building Permits and Housing Starts
- Wednesday, March 20: FOMC Meeting
- Thursday, March 21: Initial Jobless Claims, Philadelphia Fed Index and Existing Home Sales.
If you would like me to provide you with a no-hassle rate quote for your home in Washington state, please click here.