Rate Update April 22, 2010
Mortgage rates are modestly better this morning. After a fairly mellow 3 days the economic calendar picked up today.
Updated figures out of Greece revealed that the country’s budget deficit is higher than previously expected. This is a bad sign for the ailing country but good news for mortgage rates as investors seek the “safety” of US denominated assets.
The National Association of Realtors reported today that sales of existing homes rose in March by a higher than expected clip. Closed sales were up 16% compared to a year ago. Good news for the economy is often bad news for mortgage rates.
On the inflation front the Labor Department reported that the Producer Price Index, which measures price levels at the wholesale level of our economy, was relatively flat when you back out volatile food and energy prices. Inflationary pressure drives mortgage rates higher so a muted reading is good.
Lastly, later today the US Treasury will announce the size of next week’s debt auctions. A higher than expected reading would likely pressure rates higher.
I am going to recommend a locking position.
Current outlook: locking