Mortgage rates remain at the lowest level in two weeks.
US economic data was mostly mixed this morning and the financial markets are basically yawning at the releases. The Commerce Department reported earlier that personal spending increased by .8% compared to last month (better-than-expected) yet personal incomes only increased by .2% (less-than-expected). The inflationary reading embedded in the same report, known as the core Personal Consumption Expenditure price index (PCE), rose by 1.9% on a year-over-year basis. Inflation is the primary driver of mortgage rates and a reading of 1.9% is relatively low.
Responding to pressure from the International Monetary Fund and the financial markets Euro-zone leaders agreed to a €200 billion expansion of the European Financial Stability Fund earlier today. The move will raise the “firewall” further to help prevent financial contagion from spreading across the region. For now, there doesn’t appear to be a high level of fear surrounding Europe but I won’t be surprised to see it return as problems in Ireland & Greece reemerge.
I still think it is an opportune time to lock.
Current Outlook: locking bias