Mortgage Rate Update June 2, 2011

Posted on by Evan in Rate Update

Mortgage rates are unchanged this morning.

The Dow Jones Industrial Average went on to drop 280 points yesterday in response to the weak ADP jobs report sending mortgage rates even lower.

The closely watch yield on the 10-year US Treasury note fell below 3.00% for the first time since December yesterday.

So far today interest rates are taking a breather.  The volatile weekly jobless claims figures showed a modest decline in unemployed workers but the overall level remains high.

Believe it or not the recent downgrade of the economic outlook has spurred some analysts to call for the Fed to engage in another round of Quantitative Easing.  At this point it seems unlikely but nevertheless the fact that some people are even calling for it is telling.

All attention is now fixed on tomorrow’s all-important monthly employment report.  Expectations have been revised lower following Wednesdays ADP report to around 120,000 new jobs created.  As always it’s a risk floating into the monthly jobs report.

Current Outlook:  neutral