Quadruple Witching

Home purchasers and refinancers have watched interest rates this week climb and fall with the whims of the market. Economic reports this week have continued to show that the US economy has slowed down significantly, creating the danger of recession.

The Greek debt crisis has reached a crucial point following riots and a shake-up in the Greek government. Today mortgage rates have new economic data to consider along with the comments of the French and German leaders about a Greek bailout. Finally, today is quadruple witching Friday when four key futures contracts expire. Often the expiration of these “protection” positions leads to even higher volatility. But today I expect mortgage rates to settle close to current levels despite all the variables.

Consumer sentiment today is expected to decline from last month’s report. Gas prices have declined in the past few weeks which will likely hold sentiment up somewhat. The leading indicators report will in all likelihood show just how much slower the US economy is growing than it was just last month.

The big issue impacting markets this week has been the attempt to reach a deal among members of the European Union and the Greek government. This morning the leaders of both Germany and France held a joint press conference to state that they were united in their support of a new proposed bailout package. Bowing to pressure from inside their nations, the new package includes more participation from private parties and less contribution from the governments themselves. The deal will likely be finalized over the weekend. If it is not, expect the stock markets on Monday to face a huge sell-off. While this might be good for mortgage rates in the short run, it could have horrific consequences for economies across the globe–including even triggering a recession.

For an exact mortgage rate quote and a free purchase mortgage pre-approval from Total Mortgage - a licensed mortgage lender and mortgage broker, complete a free rate quote request now!.