Mortgage rates are priced slightly better this morning.
Despite better than expected economic data & corporate earnings which would normally pressure rates higher the markets are experiencing a flight-to-quality that is helping rates.
The Commerce Department reported earlier that the US economy grew at a 2.5% annualized rate in the 3rd quarter. This is better than the 1.7% growth rate of the second quarter and better than analysts had expected.
The price index for personal consumption expenditures grew at a slower than expected clip. Since inflation is the primary driver of mortgage rates this is interest rate-friendly news.
The National Association of Realtors reported earlier that existing home sales fell by more than expected last month. In the west home sales were down by 1.9% compared to 2.2% decline nationwide.
All this economic data is being overlooked by news that North Korea has fired two rockets at South Korea killing a couple soldiers and injuring a small number of civilians. The heightened geo-political tension is pushing investors into relatively “safe” US treasury securities helping to drive yields lower.
Current outlook: locking bias