Rate Update May 18, 2010

Mortgage rates are unchanged morning.

As we know inflation is generally the primary factor that drives interest rates.  This morning the Labor Department reported that price pressures at the wholesale level of our economy remain tame which is a good indication for mortgage rates.

There is no new news out of the EU today regarding the debt crisis.  EU leaders are meeting today in Brussels so we’ll be listening for any comments that come out.

There isn’t much in the way of significant economic data aside from that.  Tomorrow the Labor Department will release the Consumer Price Index (CPI) which we expect to be tame.

Current outlook: neutral