Mortgage Rate Update May 27, 2014

Mortgage rates are unchanged this morning.  Mortgage rates have been stuck at the current levels for over a week now and there is strong technical resistance that will make it hard for more improvement.

In economic news the Conference Board’s survey on consumer confidence came in at the highest level since 2008.  Higher home prices and stock prices are providing sentiment for consumers despite the economy’s lackluster job growth.

In a separate report durable goods orders (products last >1 year) unexpectedly rose in April.  However, if you strip out defense spending the index actually declined.  Overall, the economic news was better than expected today which is typically bad for mortgage rates.

In housing news, the S&P Case Shiller Home Price Index report was released and it continued to show strength in the housing market.  For the Portland market the index of home prices rose by ~11.7% on a year-over-year basis.  Dating back to 1986 when the index began tracking home prices it has risen by 5.04% annually on average.

I will shift to a locking bias.

Current Outlook: locking bias