Mortgage Rate Update March 5, 2012

Posted on by Evan in Rate Update

Mortgage note rates are unchanged this morning but the accompanying closing costs are slightly less so in fact loan terms improved over the weekend.

Economic activity in the US continues to show signs of gradual improvement which would ordinarily be bad for mortgage rates.  However, foreign affairs are keeping yields low.

ISM NUMBERS WERE POSITIVE THIS AM

A survey of business activity from the Institute of Supply Management (ISM) came in higher than expected this morning.  Digging deeper into this economic release new-orders also rose to the highest level in 12 months.  Good news for the economy is generally bad news for mortgage rates.

Meanwhile, a similar gauge of economic activity in Europe signaled economic contraction.  Earlier today China lowered its economic growth target from 8.0% to 7.5%.  Lower growth for China may have multiplier effects around the globe.

This week’s economic calendar is highlighted by the trifecta of jobs reports due out Wednesday-Friday.  In addition, this week marks the deadline for private Greek bondholders to agree to swap their debt for Euro-zone backed bonds at a fraction of the value.  A lower than expected participation rate could trigger default.

Current Outlook: floating