One quick housekeeping note: Beginning on Tuesday, May 29th (Monday is Memorial Day) ‘rate update’ will only be sent twice per week (Monday’s + Thursdays). Even with the reduced number of communications I will still be able to provide adequate education on what is taking place in the financial markets & mortgage rates. Thanks!
Mortgage rates are unchanged this morning even though most of the significant economic data is gloomy.
Results from a survey of purchasing managers in Europe showed that business activity fell by the sharpest rate in almost 3 years.
Results from a separate survey of German executives showed that business confidence fell by more than expected in May. All signs suggest that the European economy continues to falter as leaders from the 17-nation block meet to discuss solutions to the debt crisis. Will they create a solution? Doubtful, but any intriguing comments could cause rates to move higher in the near term.
At first glance a report on the market for durable goods here in the US showed demand was as expected. However, when you strip out volatile transportation orders demand fell by much more than was expected. About the only bright spot in this morning’s data was weekly jobless claims which declined modestly last week.
Mortgage rates continue to hover at all-time low levels. Will they go lower? They could but we’re in uncharted territory and I doubt anyone will be upset with a sub-4.00% fixed rate 5 years from now.
Current Outlook: neutral