Mortgage rates are improved from Friday morning.
Last week mortgage rates hit an all-time low on Thursday morning. As if often the case after a rally we saw a little pull back on Friday which pushed rates higher. This morning pricing is almost back to the all-time low level making it a good time to lock in.
Mortgage rates have benefited from the shift in economic outlook amongst financial markets participants. A few months ago most analysts believed the US economy was on a path towards recovery. However, it appears now that the economic growth experienced in the 1st & 2nd quarters was likely due to temporary inventory rebuilding and the housing stimulus.
The general opinion now is that the economy will NOT double dip but will remain stagnant for longer than expected. As a result, many investors are seeking the “safe” and moderate returns of the bond market which is helping to keep yields low.
There are a few important data points this week but I would be surprised if they delivered much impact.
Current outlook: neutral