Mortgage Rate Update May 2, 2011

Mortgage rates are unchanged this morning.

As you’ve heard by now US forces killed Osama Bin Laden yesterday.  This is great news for our country but isn’t expected to have a significant impact on financial markets.  In early trading stocks are trading slightly higher, bonds are even on the day, and gold & oil are slightly lower.

In the economy, manufacturing data showed that activity slowed by a less than expected pace in April.  According to the Commerce Department spending on construction grew by more than expected in April but still remains at a very low level.

The economic calendar is fairly full this week and includes important jobs data on Wednesday, Thursday, and Friday.  From a technical perspective mortgage-backed bonds remain “overbought” which is not a good sign for mortgage rates.  I will maintain a locking outlook.

Current Outlook: Locking