Mortgage Rate Update April 22, 2013

Mortgage rates remain unchanged for 2 straight weeks now.  Rates have stalled at 4-month lows as investors weigh a weaker than expected stretch of economic data versus the long-run reality that rates will rise.

Concerns over economic growth were heightened after Caterpillar (CAT) reported 1st quarter profits which were 45% lower than the previous.

 Caterpillar is viewed as a gauge of global economic growth so when their business is soft it can be a sign that the global economy is struggling.

In housing news the National Association of Realtors reported that existing home sales declined slightly in March from February but were up over 10% from March of 2012.  The median home price rose by nearly 12% which represents the biggest annual appreciation mark since late 2005!

The US Treasury is set to auction $99 billion in fresh debt supply which may make it hard for interest rates to fall any lower.  The economic calendar is fairly short this week.  We’ll be watching for more housing data (Tuesday), Durable goods (Wednesday), and GDP (Friday).

Current Outlook: floating