Mortgage Rate Update February 2, 2015

Mortgage rates are unchanged from last week.

According to the Institute for Supply Management manufacturing activity slowed in January across the US.  In a separate report US consumer spending declined by more than analysts had expecting.  The reports are raising concerns about the economic impact of weakness around the globe.

It’s jobs week so I wouldn’t be surprised to see some volatility as the week progresses.  Currently, the markets are expecting 235,000 new jobs created for January.  As is usual, a number north of that would likely cause rates to worsen and vice versa.

From a technical perspective momentum remains on our side.  Since the end of December the yield on the US 10-year treasury note has improved by .50%.  Mortgage rates have followed suit.

Current Outlook: neutral