Mortgage Rate Update May 13, 2011

Mortgage rates are unchanged this morning.

Prices at the retail level of our economy rose by less than analysts had expected for April according to the Labor Department’s monthly Consumer Price Index report.  Inflation is the primary driver of mortgage rates so lower than expected inflation figures is good for mortgage rates.
Mortgage rates have improved significantly over the past month.  While rates were moving lower I was concerned that technical trading patterns would cause rates to reverse higher but for now it appears that rates have settled in on a new trading range so I will change my outlook to a neutral position.

Current Outlook: neutral