Mortgage rates are slightly better from yesterday.
Employment data out of Spain is raising concerns over the European debt crisis again. Spain’s Labor Ministry reported earlier today that claims for unemployment benefits rose again in March and stood almost 10% higher from a year earlier.
Many of the Euro-zone countries are showing signs of economic slowdown raising legitimate questions about their ability to cut government spending, a requirement of the various bailout packages, and stave off another recession. As we know from recent history when concern increases regarding the stability of the Euro-zone mortgage rates tend to decrease here at home.
Here in the US the Commerce Department reported earlier that factory orders rose in line with expectations in February. In a separate report US automakers reported strong car sales in March. Higher gas prices are believed to be encouraging households to acquire new more fuel-efficient models.
I will remain neutral for one more day but expect to shift to a locking bias beginning tomorrow.
Current Outlook: neutral