Mortgage Rate Update April 15, 2011

Interest rates are unchanged from yesterday although FHA rates have decreased slightly.

Mortgage Backed Securities are trading 28 basis points higher this morning after the Consumer Price Index (CPI) increased within expectations at .5% during March.  The Core CPI (excluding food and energy) rose .1% which was slightly less than expectations.  The Core CPI is a great measure of inflation and the fact that it came in below expectations may help keep mortgage rates low in the short term (very short term).

Although we still maintain that mortgage rates are likely to rise by the end of the year, it is looking like rates will remain around current levels in the short term.  I will shift my locking stance to floating heading into the weekend as we wait for the market to make a committed move.

Current Outlook: floating