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!
Despite a better-than-expected read on consumer sentiment here in the US mortgage rates are mostly unchanged this morning.
The Thomason Rueters/ Univ. of Michigan consumer sentiment index came in at the best levels since the end of 2007.
Normally good news for the economy is bad news for mortgage rates but the European debt crisis continues to overshadow domestic economic data.
Raising concerns of contagion was news out of Spain today that the region of Catalonia will need help from the central government to meet its financing needs. Not surprisingly European finance officials have yet to pass a credible plan to curb further problems in their region. Fiscally stronger nations such as Germany continue to press for austerity while cash-strapped countries are pleading for a joint bond issuance. Until something credible is put in place US interest rates should remain near all-time low levels.
Current Outlook: neutral