The markets continued to monitor the Greece Debt situation this week. Although Greece is working through a solution to prevent default, there is still concern about whether the existing solution will actually work. Should there be news of any issues with the Greek resolution, look for increased downward pressure on mortgage rates.
Beige Book data released by the FED this week showed very slow growth is occurring in the US Economy. This sentiment was echoed by GDP data that was released.
GDP (Gross Domestic Product) Shows Modest Growth
This week GDP (Gross Domestic Product) data was released which showed that economic growth was actually stronger than originally thought in the fourth quarter of 2011. GDP is the broadest measure of the nation’s economy and output. According to data released by the Commerce Department on Wednesday, GDP grew at a 3% annual rate in the fourth quarter of 2011. This is an improvement from the 1.8% growth in the prior quarter.
Mortgage Rates: The Week Ahead
Look for the Employment Report next week to be closely watched by the markets, with the potential to move mortgage rates. There are also many other pieces of data being released with the potential to move mortgage rates and strong potential to move rates up.
Should I Lock In a Mortgage Rate or Wait?
As the market looks for continued confirmation that housing has hit a bottom and the Economy is gaining strength, more and more pieces of data are trickling out to confirm this. Given that mortgage rates have been at or near all time historical lows for months, they are putting in a bottom or level of support, the longer they stay above this support, the hard it will be to break below that support. This means that mortgage rates have more potential to move up and the question is not whether they will move up, but when.
That being said, your financial situation and mortgage needs are unique. We can not only help you understand whether or not you should lock in your mortgage rate now, but can help you understand which mortgage program best fit your needs.