Mortgage rates are unchanged this morning.
It’s more of the same today. Despite better than expected economic data traders are choosing to hold onto safe-haven positions which benefit mortgage rates.
According to reports out of Libya the opposition continues to make progress in their effort to overthrow current President Gadhafi’s regime. Oil prices have backed off the $100 per barrel mark. As we pointed out in yesterday’s ‘rate update’ oil prices were moving higher on fear only. Saudi Arabia has committed to making up for any supply shortfalls and to this point they have not had to step in.
According to this morning’s University of Michigan Consumer Sentiment Survey US consumers are the most optimistic they’ve been in 3 years. This is good news for the economy and ordinarily would be bad news for mortgage rates (I should disclose here that I was brought up in an Ohio State household so have been bred to be skeptical of anything out of U of M).
The Commerce Department reported that GDP grew at a 2.8% clip in the 4th quarter. This is higher growth than we had experienced in the 24 months prior but still short of expectations. This report plus the flight-to-safety trade is helping mortgage rates to remain low.
Current outlook: locking