Mortgage Rate Update, June 17, 2011

Mortgage rates are riding the economic currents this week and today will be the same.  With a Greek bailout deal still pending and the effects of quadruple witching, the markets and interest rates will likely face significant volatility today.

Mortgage Rate Trend Direction:     Neutral/Up
Economic Reports/Rate Impact:    Consumer Sentiment, 10:00 AM ET, Moderate Rate Impact
                                                                 Leading Indicators, 10:00 AM ET, Moderate Rate Impact
Key News:                                            France/Germany united on Greek Bailout

Summary
Mortgage rates have been fluctuating with the ups and downs of the broader market this week. Today has an interesting mix of economic data, international news and the expiration of key futures contracts that could produce extreme volatility.  However, I expect rates to hold relatively close to current levels with some slight pressure upward.

Impact of economic reports
Neither report today (consumer Sentiment or Leading Indicators) are likely to have much of a direct impact on mortgage rates today.  Both reports are expected to show economic weakness in keeping with other recent data.

Impact of international or political events
French President Sarkozy and German Chancellor Angela Merkel held a press conference early today to indicate that their nations were united in a new proposed bailout package for Greece.  The plan includes more participation from private interests and less support from the larger members of the European Union.