Mortgage rates improved modestly last week and remain very near multi-month lows.
Friday’s all-important jobs report was in line with market expectations. 215,000 new jobs were created during the month of March and the unemployment rate crept up to 5.0% as more citizens entered the workforce. Mortgage rates held steady on the release.
In case you missed it the S&P Case-Shiller Home Price Index was released last week for the month of January. For a second straight month Portland led the nation in year-over-year home price appreciation (11.8%). Good news if you are a seller and not as much for prospective buyers.
This week’s economic calendar is very light. There are a few Fed officials scheduled to speak throughout the week and minutes from the most recent monetary policy meeting are also scheduled for release. Barring any surprises with those events we’d expect mortgage rates to react to technical trading patterns and global influences.
From a technical perspective mortgage rates look like they could make a run for another .125% improvement. The US 10-year treasury yield is currently trading at 1.77% and recent lows occurred back in mid-February at 1.55%.
In comparison, Germany’s 10-year bund is currently trading at .14% and Japan’s equivalent is trading at -.08%. That’s right, investors in Japan’s 10-year government bond are actually paying .08% to invest. As long as these rates remain low the US should experience low mortgage rates.
Current Outlook: floating