Nashville Mortgage Rates Update- 12/6/11

Nashville Mortgage Rates

Not much to report today-the mortgage bond market as well as treasury market continues to trade in its well defined range, although MBSs held better than treasuries as the safety trades caused by the mess in Europe continue to be lifted on the belief there will be a short term answer on the debt issues when the EU summit begins Thursday and into Friday. That said no one should believe for a minute Europe will be out of its crisis, but for now a lot of the angst has diminished, at least until Friday.

It’s still a very fluid situation with little ability to properly anticipate what will happen next, but in the end, the EU will most likely be restructured with some countries leaving, and Germany holding the key to many of the issues facing an experiment that began in 1999 and now is unraveling in a sea of debt so large that it won’t be under control for a year or more- if then. Th EU as we have known it is about to change radically, but it will take a lot of time.

There was no data today to think about; tomorrow the only things of consequence is at 3 EST when October credit data is reported. Present thinking is credit expanded by $7.0 billion, a very small increase. We pay all attention to revolving credit as a measurement of consumers willing to take on debt; for a couple of years now, revolving credit has declined as consumers reduce debt.

We’ll have another Nashville Mortgage Rates Update on Thursday or Friday, after more is know regarding the EU decisions (or lack thereof).