Mortgage rates are starting the day better but they may not last for long.
Renewed concern over the slow pace of economic recovery in the US is helping mortgage rates this morning. The National Federation of Independent Businesses released the results of a recent survey which showed that small business owners were more pessimistic in March than they were in February. Bad news for the economy is often good news for mortgage rates.
Also helping mortgage rates this morning are comments made by PIMCO officials (PIMCO is the world’s largest bond manager) regarding deflation. They mentioned that developed countries should concern themselves with deflationary threats rather than inflationary threats. Since inflation is the ultimate driver of mortgage rates these comments also helped interest rates move lower.
I don’t expect these rates to last so I am recommending a locking position. The substantial economic data begins tomorrow.
Current outlook: locking