Rate Update August 3, 2009
Mortgage rates are higher this morning as stock markets around the world trade higher.
Two separate reports released this morning showed that manufacturing activity in the Chinese & British Economies was stronger than expected. Chinese & European stock markets are all rallying on the news.
US manufacturing also showed signs of recovery this morning. The Institute of Supply Management released their monthly report on manufacturing this morning which showed that activity slowed in July but a slower pace than previous months.
Looking ahead this week, we will get a look at inflation numbers tomorrow when the Personal Consumption Expenditure (PCE) index is released. On Thursday we’ll get next week’s treasury auction schedule. Finally, on Friday the all-important jobs report is released.
For now, we’re going to recommend a locking position as much of the recent economic data is suggesting that the economy may be poised to move towards recovery.
Current Outlook: locking