Mortgage Rate Update April 30, 2012
Mortgage rates are unchanged today.
It’s a new week but the theme is unchanged. The domestic economy continues to show signs of weakness and concern over Spain is ongoing. However, interest rates cannot seem to move any lower.
The Commerce Department released figures this morning showing that US incomes grew by slightly more than was expected last month but that consumers spent slightly less. An important inflation gauge within the report showed that prices rose as expected. All-in-all the report has not had a substantial impact on the markets.
Looking ahead for the week the economic calendar is full with the monthly trifecta of employment reports (ADP jobs report, weekly jobless claims, and all-important jobs report) kicking off on Wednesday.
In Spain the statistics bureau confirmed what was already assumed. The country is officially in a recession after their economy contracted by .3% in Q1. In response Standard & Poor’s downgraded much of Spain’s banking sector.
Bad news for Europe & the US economy is generally good news for mortgage rates. However, technical trading patterns are currently preventing rates from moving below all-time low levels.
Current Outlook: locking bias