Mortgage Rate Update June 1, 2011

Mortgage rates are better this morning.

Concerns regarding weakness of the economic recovery grew this morning after more economic reports indicated sluggish activity in May.

Weak jobs figures raises concerns but let's not get carried away. It won't get this bad.

Payroll company ADP released its version of the monthly jobs report earlier.  Analysts had been expecting job growth of around 200,000 for the month of May and this morning’s report showed only 38,000 jobs were created.  It’s worth noting that more emphasis is placed on Friday’s Bureau of Labor Statistics report and that the two are rarely correlated.

In a separate report a private research institute released it’s monthly index of manufacturing activity which showed growth in this area of the economy plunged in May compared to April.

Bad news for the economy often hurts stocks and helps interest rates.  This morning stocks are trading sharply lower and the 10-year Treasury yield temporarily broke below 3.0% for the first time in 6 months.

Current Outlook:  floating