Mortgage rates are unchanged today.
Since the European debt crisis remains front and center for the financial markets we’ll start there.
Spain announced today that their unemployment rate rose to the highest level in 18 years at 24.4%. For workers under the age of 24 the unemployment rate is approximately 50%. Spain’s economy is not healthy which does not bode well for their ability to remain solvent. The announcement adds more fuel to euro crisis fire and should help US interest rates remain low.
Here in the US the first reading on Q1 gross domestic product (GDP) showed that the economy grew at a 2.2% pace. This was below expectations of 2.5%.
Despite the slower than expected economic growth more than 70% of US corporations have reported better than expected Q1 earnings. Normally good news for stocks is bad news for mortgage rates but the debt crisis in Europe continues to overshadow other data.
Mortgage rates remain at all-time lows. Where will they go from here? If history is any indication they will not go lower so I will maintain a locking bias.
Current Outlook: locking bias