Rate Update June 17, 2010
Pricing on mortgage rates is slightly better today.
This morning’s Consumer Price Index (CPI) report released by the Labor Department showed that inflationary pressures remain tame. Since inflation is the primary factor that drives mortgage rates this is a positive sign.
The Labor Department also released the weekly survey of jobless claims. The numbers showed that 12,000 new claims were filed last week which is higher than expected. Worse than expected jobs data is bad for the economy but good for mortgage rates.
Later today the US Treasury will announce the size of next week’s bond auctions. Ordinarily a higher than expected figure would pressure mortgage rates higher but given the economic outlook foreign demand is likely to be strong which will help keep rates low.
Current outlook: neutral