Rates Improve Slightly on Cyprus Banking Crisis
Mortgage interest rates improved slightly on the week as news centered on the Cyprus banking crisis. Cyprus has until Monday to come up with 5.8 billion Euros in order to obtain bank rescue funds from the ECB. Cyprus considered taxing deposits to raise this money. Markets are concerned that Cyprus may leave the European Union if unable to raise the necessary funds to receive its bailout. As a result some money has moved into the relative safety of US and German bonds. Economic data was mixed. Economic data stronger than expected included February Building Permits, weekly jobless claims, February Leading Economic Indicators, and the Philadelphia Fed Business Index. Data weaker than expected included the NAHB Housing Market Index, February Housing Starts, and February Existing Home Sales. Also of note, the Fed reiterated its monthly commitment to $85 billion in quantitative easing at the conclusion of its FOMC meeting.
The Dow Jones Industrial Average is currently at 14,488, down slightly on the week. Crude oil spot prices are currently at $92.96 per barrel, down slightly on the week. The Dollar strengthened versus the Euro and weakened versus the Yen on the week.
Next week look toward Tuesday’s Durable Goods Orders and New Home Sales, Thursday’s final look at Q4 GDP and jobless claims, and Friday’s Personal Income and Outlays as potential market moving events. Equity markets are closed next Friday for Good Friday.
Mortgage interest rates improved slightly on the week. Currently, a Conventional 30 year fixed rate is hovering around 3.75% with no points.
** Mortgage rates are subject to daily market fluctuations and can change without notice. Mortgage rates are also effected by down payment, occupancy, loan amount, credit score and property type.