We start the week with two of the major concerns that have weighed on the market in past weeks coming to a resolution with Greece and Italy both appointing new Prime Ministers. The market did not have confidence that the previous leadership of these countries would be helpful or even willing to participate in the austerity plans, taxes and other steps necessary to prevent insolvency.

These ongoing European issues have played a large role in maintaining the extremely low mortgage rates we see today and in the past few weeks. More European drama may push rates lower while success or no news in the region may lead to higher mortgage rates.

Mortgage Rates and Europe Moving Forward

Now that Italy and Greece have new leaders that are willing to “get with the program”, their underling circumstances are unchanged. They are in seriously bad shape and insolvency is a possibility, although less likely if they work with the other Euro countries. More importantly, there is nothing preventing other countries from going through the same cycle of volatility we have witnessed with Italy and Greece. The volatility that will occur should other countries show similar dramatic flares will be good for mortgage rates.

Economic Calendar for Week of November 14, 2011

• Tuesday – Producer Price Index, Retail Sales
• Wednesday – Industrial Production, Housing Market Index
• Thursday – Housing Starts, Jobless Claims, Philadelphia Fed Survey
• Friday – Leading Indicators

Current Outlook on Locking Your Mortgage Rate

Mortgage rates are still near all time record lows with a lot of upside movement possible and maybe even probable. In a volatile market like the one we’re in, now is a good time to speak with us about which program fits your needs and whether or not locking in your rate is a good idea for you. This week will have some significant data coming out that can affect rates, so waiting to speak with us may be a gamble if rates begin moving up.