Mortgage rates are priced slightly better this morning.
Good news for the housing market this morning. The National Association of Realtors reported that pending homes sales climbed by 22.4% in April from a year earlier. Grant it, much of the increase is being credited to the first-time homebuyer credit that has since expired.
Most of the economic data in the US has been positive suggesting an economic recovery. However, this good news is being overshadowed by the uncertainty of the EU debt crisis, geo-political tensions in Korea, and the BP oil spill. There seems to be a tug-of-war happening in the financial markets between these two schools of thought.
Should the bulls win out we’d expect interest rates to climb but should the bears win we can expect rates to remain low. For now, I will recommend a floating position.
Current outlook: floating