Mortgage rates were helped out last week by renewed concern over the European debt default crisis and Greece’s possible referendum vote. Without this concern in the eyes or the market, it is very likely that rates would have increased given somewhat positive comments that came out of the FED meeting last week.

This week has little data coming out with Jobless Claims and Consumer Sentiment being areas of focus. More likely to affect mortgage rates in the United States are the events unfolding in Europe in respect to Italy.

Italy Presents New Worries Which May Benefit Mortgage Rates

Since worries about the Greece debacle and possible referendum vote have lessened since the referendum vote was scrapped, Europe is now turning its attention to Italy.

Italy is facing a situation that is not all that unlike Greece’s and there is concern about the stability of the Italian government. This means that these fears may cause traders to take their money out of equities and put it into bonds, which may help mortgage rates maintain their current levels (not go up) or decrease. How the Italian scenario plays out may very likely affect mortgage rates this week.

Economic Calendar for Week of November 7, 2011

• Wednesday – EIA Petroleum Status Report
• Thursday – International Trade, Jobless Claims, Import and Export Prices
• Friday – Consumer Sentiment