Mortgage Rate Update May 1, 2012
Mortgage rates are unchanged today.
With most financial markets closed in Europe for May Day interest rates here in the US are taking direction from the domestic stock market this morning.
US stocks are trading higher on a better than expected purchase managers reading from the Institute for Supply Management. When stocks move higher it often pressures rates higher as well.
Interest rates are also being pressured higher by technical trading patterns. The 10-year US Treasury note is yielding 1.95% and has been hovering above resistance at 1.90% for days. Unless the 10-year treasury yield can manage to break through this important layer I don’t see mortgage rates getting any better than the all-time low levels we’re currently near.
I shifted my outlook to locking about a week ago and will leave it there unless the 10-year treasury yield can manage to close below 1.90%.
Current Outlook: locking bias