This was a bad week for mortgage rates as treasury bonds and mortgage bonds lost over 100 basis points, sending fixed rates up about a quarter point higher. Part of this was due to the situation in 
Greece. The Greek parliament approved the austerity program, a prerequisite for any bailout, and the European Union moved forward with the first step of support. But this is still just a temporary solution. In order for this package to work, private investors in Greek debt have to be on board, and the new deadline for an agreement on how this will work has been moved to mid September. As we get closer to this date, the markets will refocus on this and the dance will continue. Get more info…
A lot of news on the health and direction of the economy came out last week. GDP was up solidly, increasing at an annual rate of 3.2%, extending the trend of the last two quarters. The consumer confidence index rose to a 
reading of 60.6, the highest level since May. Home sales increased last month, while Case Schiller reported that home prices are still soft. The Fed concluded their two day meeting and released a statement that despite a pick up in the economy and even though commodity prices are moving higher, their bigger concern is still the risk of deflation in the economy. Their quantitative easing program will continue as planned.