Mortgage Rate Update May 30, 2013

Mortgage rates are mostly worse.  May will go down as one of the worst months on record for mortgage rates with 30-year fixed rates finishing the month +.625%.  The last time we saw such an acute increase in interest rates inside one month was August of 2003.

Believe it or not pricing on mortgage rates is actually slightly better this morning than they were 24 hours ago.  Higher than expected weekly jobless claims numbers are helping the bind market.  In addition, 1st quarter GDP was revised modestly lower this morning.  Bad news for the economy tends to be good news for mortgage rates.

In housing news, the National Association of Realtors released data which shows that the number of pending home sales nationwide hit the highest level in over 3 years.  If the inventory of homes for sale remains low then prices will likely continue to increase at a strong clip.

Unfortunately the outlook for mortgage rates remains unchanged.  I expect that rates are more likely to increase then decrease at this point.

Current Outlook: locking bias