Mortgage Rate Update May 31, 2011

Posted on by Evan in Rate Update

Mortgage rates are unchanged this morning.

Interest rates looked as if they’d inch higher this morning following reports out of Europe that a fresh round of bailout money would be provided to help Greece avoid default.  Interest rates here in the US have been pushed lower over the past month thanks to a “flight-to-safety” move inspired by renewed fears over Greece’s fiscal condition.

However, the mood on Wall Street reversed following more weak economic data.  Both Consumer Confidence and economic activity in the Chicago region were reported worse than expected.

In housing news, the S&P Case-Shiller Home Price Index showed that home prices continue to decline on a year-over-year basis.  Analysts blame high unemployment for scaling back demand and bank foreclosures for increasing supply.  In Portland home prices fell 7.6% from March 2010 to March 2011.

Looking ahead this week is employment week so tomorrow, Thursday, and Friday brings significant economic data that can impact rates.

Current Outlook:  floating