Mortgage Rate Update April 29, 2011

Mortgage rates are priced slightly better again this morning.

It was a busy morning for new economic data but much of the new data was released in line with analysts’ expectations so the financial markets haven’t reacted much.

The Commerce Department reported that personal incomes grew by .5% in March while consumer spending increased by .6%.  The inflation index known as “personal-consumption expenditures” price index (PCE) increased by 1.8% on a year-over-year basis in March.  This level of inflation is still considered modest which is a good sign for mortgage rates.

Since mid-April mortgage rates have improved by .125%-.25%.  This has mostly been driven by renewed concerns over the strength of the economic recovery and a subsequent ease of inflationary fears.  The financial markets work in cycles so the recent move lower for mortgage rates is likely to be followed by a reversal higher.  Over the past 3 days the pace of improvement has slowed so from a technical perspective it looks like it’s time to lock.

Current Outlook: Locking