Last week saw most economic data come in below market expectations, including Friday's GDP report. As a result, the 10 Year Bond Yield dropped from 2.07% (on 01/23/12 - Monday) to 1.90% (on 01/27/12 - Friday). This also drove down mortgage rates.

Today, the 10 Year Bond Yield has fallen to 1.84% due to more uncertainty in Europe. Germany and the rest of the European Union (EU) are struggling to come to an agreement regarding Greece's budget and the restructuring of its debt during the European Summit meeting today. There are also continued worries of the European crisis further spreading throughout the EU. This resurgence of market uncertainty over the EU is causing a flight to safety to safer investments, hence the drop in the 10 Year Treasury Yield and Mortgage Rates.

Market Data this week:

Tuesday, January 31st - Consumer Confidence

Wednesday, February 1st - N/A

Thursday, February 2nd - Weekly Jobless Claims

Friday, February 3rd - Unemployment Rate / Employment Report (biggest economic indicator every month)

Stephen Casil, Lyons Mortgage Services Inc.