Rate Update June 1, 2010

Fixed mortgage rates are unchanged this morning.

Economic news out of the US continues to be reported better than expected.  This morning both construction spending in April AND US factory activity in May were better than analysts had expected.

Ordinarily good news for the economy is bad news for mortgage rates but the interest rate markets continue to be influenced by international forces.

Economic data out of China showed that the pace of manufacturing activity was slower in that economy than analysts had expected.  This is being interpreted as a sign that the global economy is slowing.

Uncertainty surrounding the EU continues to drive money into US-denominated assets, including mortgage-backed bonds.  The additional demand is helping to keep mortgage rates low.

Current outlook: floating