Mortgage Rate Update April 15, 2013

Posted on by Evan in Rate Update

Mortgage rates remain at the lowest levels since the beginning of the year.

Weaker than expected economic data out this morning is helping interest rates to remain low.

China’s statistic bureau reported earlier today that economic growth slowed to a 7.7% annual rate in the first quarter of this year.

ALTHOUGH ROBUST BY US STANDARDS, CHINESE GROWTH FIGURES WERE DISSAPOINTED THIS AM.
ALTHOUGH ROBUST BY US STANDARDS, CHINESE GROWTH FIGURES WERE DISAPPOINTING THIS AM.

 Although 7.7% sounds robust relative to the US’s 1%-2% growth rate it was slower than analysts had expected.

Here at home the National Association of Homebuilders confidence index fell to the lowest level in 2 years.  This was certainly a surprise to the markets given the recent strength in the housing sector.  This comes on the heels of last Friday’s retail sales report which also showed weaker than expected results.

Bad news for the economy is good news for mortgage rates.  Thus far this morning stocks are trading lower and US interest rates remain low.  How long will this trend last?  No one knows for certain but the near-term conditions do not alter my end of year outlook which calls for higher interest rates so locking in today probably will not look bad in the long run.

Current Outlook: locking