Mortgage Rate Update May 4, 2012
Mortgage rates are priced slightly better today.
This morning’s all-important jobs report has come in below expectations which helping mortgage rates remain low but technical trading patterns may prevent them from improving. Analysts had been expecting around 160,000 new jobs to have been created in April but the actual figure came in at 115,000. However, the Bureau of Labor Statistics also revised higher the previously released figures for February and March.
As I pointed out earlier in the week technical trading patterns are preventing rates from improving in a significant manner. On the disappointing jobs data the US 10-year Treasury yield has managed to break below resistance at 1.90%. If the market can close below this layer of resistance then we may see mortgage rates create new all-time lows. I will shift to a floating position as long as we’re below this mark.
Current Outlook: floating