It appears today’s European Union has done little to convince global investors a plan is now in place sufficient to bring the euro-zone crisis to an end.  One analyst described the outcome from the summit as “a great leap sideways.”  Boiling this rather involved event down to its smallest denominator — I think it is safe to say the direct influence of the European financial crisis will likely remain supportive of sideways to perhaps fractionally lower trending mortgage interest rates here at home.

Looking ahead to next week — Uncle Sam will be in the credit markets looking to borrow $65 billion in a three-part auction.  The Treasury Department is scheduled to sell $35 billion of 3-year notes on Monday, $21 billion of 10-year notes on Tuesday and $13 billion of 30-year bonds on Wednesday.  Tuesday’s activities will be bookended by the release of the November Retail Sales data in the morning and the post-meeting statement from the Federal Open Market Committee when they wrap up a one-day meeting later that afternoon.  Inflation figures from the factory gate and from Main Street will be the primary focus of mortgage investors as the government releases their November Producer Price and Consumer Price index figures on Thursday and Friday respectively.

Mortgage Rates as of Friday December 9, 2011 ( purchase transactions )
30 day rate locks, subject to credit score and loan to value edits

FHA
30 year fixed               3.75%

Conventional
30 year fixed rate          3.875%
15 year fixed rate          3.25%

5/1 ARM                        2.875%

7/1 ARM                       3.125%

For Mortgage Questions, Contact Bob Strandell.