Mortgage Rate Update February 1st, 2012

Mortgage rates are unchanged again this morning.

The first of three employment reports was issued this morning.  The private payroll company ADP released its version of the monthly jobs report earlier and it showed the US economy added 170,000 new jobs in January which was slightly less than expectations.  Currently, the markets are expecting 145,000 new jobs to be reported in Friday’s all-important jobs report.

In other economic news, manufacturing activity was reported better than expected in China, Germany, and the US.  The trifecta of reports has investors hoping that the global economy can weather the headwinds of the European debt crisis.  Good news for the economy is typically bad news for mortgage rates.

Greece is still looking for a settlement with existing debt holders to accept a steep discount so that the ailing country can remain solvent.  Still no agreement at this point.

The 10-year US treasury note, which mortgage rates loosely follow, has traded between 1.80%-2.20% for the past few weeks and it is currently at the low end of that range so I recommend locking.

Current Outlook: locking