Mortgage Rate Update May 2, 2012
Mortgage rates are unchanged today.
Weaker than expected domestic and international economic data is helping mortgage rates to remain near all-time lows this morning but we’re still unable to move lower thanks to technical trading patterns (see yesterday’s ‘rate update’ for further explanation).
Here in the US the first of three significant employment reports out this week showed that hiring slowed last month. The report from the private payroll company ADP indicated that only 119,000 new jobs were created in the private sector last month. Analysts had been expecting approximately 175,000. In a separate report from the Commerce Department both factory orders and durable goods orders contracted in March.
How does this compare to Europe? Believe it or not we’re doing much better. Similar data out for the Euro-zone today showed that their unemployment rate rose to 10.9%, the highest rate since 1997. Furthermore, manufacturing activity shrank sharply as steep austerity cuts continue to take a toll on their economy.
Bad news for the economy is typically good news for mortgage rates but rates are already at all-time low levels and are having trouble improving.
Current Outlook: locking bias