At the time I am writing this mortgage interest rates are almost 1/8th of a percent lower than they were last Friday.

This week was dominated by news about the Fiscal Cliff and the Europe debt crisis. Politicians still can't come to an agreement about how to avoid the approaching Fiscal Cliff when the all of the Bush tax cuts are set to expire. Both sides want to extend some of them, but can't come to an agreement of which to extend and which to let expire. As of today we have 1 month left for the politicians to come to agreement. As long as there is uncertainty the market will remain volatile. My guess is that they will wait to the last minute then come to a short term agreement, basically extending the problem until the new Congress starts.

In Europe, Greece is back in the fore front. This week Greece was approved for a $44.6B loan in December to keep the country from defaulting on their debt. I am not sure how giving a country that is already drowning in its debt more debt is going to solve anything, but that's what the Euro finance ministers decided was best.

Over the last month interest rates have stayed in a narrow range going slightly up but then back down. It seems that rates have bottomed out for the time being. Events that would have normally caused rates to drop have had a muted effect. If you have been holding on to see if rates can go any lower I would recommend taking action now.