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Mortgage Rates Improve After Weak Economic Data

Mortgage rates took a break from reacting to headlines coming out of Europe and focused instead on domestic economic data.  That turned out to be helpful today as Retail Sales came in much weaker than expected.  Downbeat economic data generally helps rates move lower.  Today was no exception, but the gains were modest.  Most lenders are still quoting conventional 30yr fixed rates of 4.125% on top tier scenarios, though there are a few on either side of that.

Today's Greek headline hiatus isn't the start of a new trend, but rather a calm before the storm.  Over the next two days, we'll find out whether or not Greece and other Eurozone parliaments have approved of the bailout terms negotiated this past weekend.  From there, quick action would be needed in order to make sure Greece remains solvent between now and the time that the bailout funding would actually kick in.  Bottom line, the next few days have more potential volatility, and after that, it will still be a lingering threat for at least a month. 

Of course Greece isn't the only thing moving rates around the world, but it's definitely something that market participants are watching and reacting to.  Today provided a good example of how domestic economic data can Trump Greece-related considerations.  Tomorrow may see an even bigger battle as the expected increase in Greek headlines will face off against Congressional testimony from Fed Chair Yellen.  In terms of lock/float strategy, we still haven't seen enough positivity to plan on a bigger-picture shift in the cautious outlook.

This Daily Mortgage Rate Update is provided in partnership with Mortgage News Daily.