Mortgage Market Update and News

Dated: 11/21/2012

Views: 764

Little Change in Mortgage Rates

There was little market moving news for mortgage rates this week. Little apparent progress was seen regarding the US fiscal cliff or the debt troubles in Europe. Since it's extremely difficult to estimate the impact of Hurricane Sandy, investors did not give much weight to the US economic data released this week. As a result, mortgage rates ended the week with just a small change.

Investors are operating with a high degree of uncertainty these days. Many hoped that after the election political leaders would provide clear signs that a compromise could be reached to resolve the upcoming fiscal cliff. If no action is taken, a series of spending cuts and tax increases will occur at the end of the year, which likely would result in a sharp slowdown in US economic growth. In general, investors have reacted to the uncertainty by shifting from riskier assets such as stocks to safer assets, including mortgage-backed securities (MBS). If a deal is reached, this flight to safety may reverse, at least to some degree.

The situation in Europe is also a source of frustration for investors. It's clear from the economic data that growth in the region is slowing, even in the stronger countries such as Germany. The big question is what actions will be taken to address the debt troubles. European officials remain divided about releasing additional aid to Greece. Spanish leaders have not decided whether they will ask for assistance from the European Union (EU) bailout programs. In short, while economic conditions continue to get worse, there has been little progress in the conflict between the troubled countries which need help and the stronger countries which will have to pay the bill. 

Blog author image

John Newman

John graduated from the University of Maryland with a B.S. in Finance and started his career as a Financial Advisor with Merrill Lynch where he assisted high net worth individuals with their investmen....

Want to Advertise on this Site?

Latest Blog Posts

Spring Is Here

Helpful hints to get your home ready for summer...Trim branches so that they are 10 feet away from your roofTouch up peeling paintHave your air conditioning unit serviced and make sure that

Read More

HomeBuyer Happy Hour At BigFish Grill In Crofton

Have a drink, grab a bite to eat and learn about real estate in a casual setting..Are you thinking about buying a home in 2018 and dont know where to start ?Do you want to learn more about Short

Read More

Selling A House 12 Selling Mistakes To Absolutely Avoid When Selling Your House

Selling a House is an art within itself that requires the necessary steps to getting your home sold as quickly and as effective as possible. Without following the optimal steps to selling your

Read More

5 Secrets To Creating Functional Spaces That Sell

5 Secrets to Creating Functional Spaces that SellYou’re searching for your dream home…day after day you look online and see the same boring, old spaces and nothing stands out to you.  THEN,

Read More