Mortgage Rate Update July 1, 2011

Mortgage rates are unchanged this morning.

More positive news for the manufacturing sector this morning.  The Institute for Supply Management released it’s manufacturing index for June this morning which was better than analysts had expected.  This marks the 4th consecutive report on manufacturing activity in the past two weeks that has been better-than-expected.  On this news stocks are trading higher which is putting pressure on rates once again.

It’s been a rough week for interest rates.  Mortgage rates increased by .125%-.25% across the board.  I expect the markets to settle down next week as traders begin to reconsider the longer-term fiscal strength of the Euro-zone & the health of the economic recovery.

Have a great 4th of July weekend!  Rate Update will be back on Tuesday, July 5th.

Current Outlook:  neutral