The Bridgewaters, Massachusetts

Mortgage Rate Forecast for May 28, 2010

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.72 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 101.94 - up 7/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be up to 0.250 points better in price this morning as compared to yesterday afternoon.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days from 4-28-2010 to 5-28-2010:

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

• Personal Income and Outlays Report - there was a 0.4% increase in personal income in April. This follows a gain of a gain of 0.3% in March and a 0.1% gain in February. Year-over-year, personal income is up 2.5%. While income is up, consumer spending was flat in April, indicating people are holding onto their money. Year-over-year, consumer spending is down 4.6%. Inflation is still almost nonexistent as the core Personal Consumption Expenditures (PCE) index is up only 0.1%, the same as in March.
  
  This report provides us with a measurement of the consumer's ability to spend and their current spending habits. Because consumer spending makes up two-thirds of the U.S. economy, any related data usually has an impact on the mortgage market and mortgage rates. This report had no impact on mortgage rates this morning.
  
  
• The Revised University of Michigan Index of Consumer Sentiment - came in at 73.6, better than the 73.3 reading analysts were expecting, and better than the 72.2 reading the previous month. An increase in consumer confidence indicates that consumers may be more apt to make large purchases in the near future. However, consumer sentiment report usually does not have much of an impact on the mortgage market or mortgage interest rates.

In other news, prices of bonds and mortgage backed securities fell significantly yesterday which led to higher mortgage rates as the stock market rallied on comments from China that it would continue investing in Europe.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past year:

Mortgage Rate Lock Advice:

Prices of mortgage backed securities are no longer at their highs of 2010. Yesterday, the price of the FNMA 30-Year 4.5% Coupon fell 59 basis points and closed within 97 basis points of its all-time high of 102.69 which was on November 30, 2009. This morning, the MBS coupon was within 78 basis points of that all-time high. As a comparison, what that means is this: if a 30 year fixed mortgage rate was 4.875% with no points yesterday, and if price of the MBS 4.5% coupon were to go as high as 102.69, then the best the 30 year fixed mortgage rate would be is 4.75% with 0.25 point today.

If I were applying for a mortgage today, I would lock the rate as mortgage rates were already at their lows for 2010, and they're now rising. While it's still possible that mortgage rates could go lower again with the ongoing economic crisis in Europe, it won't be by much, and I would not risk the chance waiting for it.

Be sure to check out today's mortgage rates.

When the housing market began recently unraveling at warp speed and quickly lugged the overextended mortgage industry along with it things looked quite bleak for the U.S. economy. Housing, after all, is one of its major components and should it be hit with a serious medical condition, taking a simple pain killer wouldn't help much. Then if ever, when the fury of the real estate sector's downturn became better understood, drastic action was called for.

The Federal Reserve bravely stepped forward intent on showing how it's done. Right on the heels of the private investor vanishing from the secondary mortgage market the Fed knew that to avoid an utter disaster with global consequences it had to quickly fill the vacuum. It began buying MBS, or mortgage-backed securities, insuring that home loan interest rates wouldn't shoot through the roof. That was essential to keep the housing market on its wobbly feet, giving it something concrete to rely on. There was some early howling against this vast government interference but it soon abated as stark reality set in. Without the Fed's decisive action Stone Age would have been right around the corner.

Congressional Budget Office, or CBO, reports that the Fed's asset collection now exceeds $2 trillion, of which MBS make up well over half. Other holdings include Treasury securities and bank loans. It earns interest on all that paper, as it should. CBO projects that the Fed will haul in about $70 billion in profit this year on its portfolio, money that it'll eventually remit to the Treasury. The central bank assumed far more risk than it usually does by purchasing MBS, but it seems to be paying off. Who says the public sector can't make money?

The government has bailed out scores of mortgage lenders and financial institutions during this notorious housing meltdown, partly with the idea that they would then help distressed homeowners ward off potential foreclosure. To a large extent, the results are disappointing. Their playbook instead often included such selfish tactics like paying absurd bonuses and completing acquisitions, tricky moves that stimulated much of the angry population into voluntary Wall Street watchdogs with a mission.

What if the Obama Administration came up with a new initiative using the $70 billion Fed profit to make a real and lasting difference in the mortgage foreclosure predicament? The current programs addressing it, the HAMPs, RAMPs and STAMPs and such, have principally proved inefficient. Now is the time to try a fresh angle to try to sort this housing and mortgage mess out and here is a nice down payment for it.

Photo by wwarby

Mortgage Rate Forecast for May 27, 2010

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 102.31 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 102.03 - down 9/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be up to 0.25 points worse in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days from 4-27-2010 to 5-27-2010:

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

• First Revision to the 1st Quarter Gross Domestic Product (GDP) - the GDP in the 1st Quarter of 2010 contracted to an annualized rate of 3.0%, and was less than the 3.5% growth rate that was expected, and much less than the 5.4% growth rate in the 4th Quarter of 2009. So far, this has been a jobless recovery, and unemployment in recent weeks has been increasing. As confidence remains low and unemployment remains high, it's not expected that consumers will be purchasing more goods again any time soon. While significant, the data usually does not have an impact on the mortgage market or mortgage rates unless it varies greatly from forecasts.

• Jobless Claims - 460,000 new claims for unemployment were filed last week, and 10,000 more than expected, but 14,000 less than the previous week. The four-week average for unemployment is up by 2,250 to 456,500. However, continuing claims for the week of May 5 is down 49,000 to 4.607 million. All signs indicate the economy has been recovering of late but without much of an increase in jobs. This data is usually not considered to be very important to the mortgage market and had no effect on mortgage rates this morning.

In other news, the Treasury Dept. will be auctioning $31 billion in 7-Year Notes today. The Notes are used to finance the massive government debt. If there is a strong demand for the Notes, we should see the bond market move higher (resulting in lower mortgage rates) during afternoon trading. However, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to a broader selling in bonds and mortgage backed securities. The selling of mortgage backed securities could result in higher mortgage rates.

Stocks markets are up this morning on news that China will purchase European debt.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past year:

Mortgage Rate Lock Advice:

Prices of mortgage backed securities are at their highs of 2010. Yesterday, the price of the FNMA 30-Year 4.5% Coupon closed within 38 basis points of its all-time high of 102.69 which was on November 30, 2009. This morning, the MBS coupon was within 35 basis points of that all-time high. As a comparison, what that means is this: if a 30 year fixed mortgage rate was 4.50% with 1 point yesterday, and if price of the MBS 4.5% coupon were to go as high as 102.69, then the best the 30 year fixed mortgage rate would be is 4.50% with 0.625 point today.

If I were applying for a mortgage today, I would lock the rate as mortgage rates are already at their lows for 2010, and they're probably as low as they're going to go. While it's possible that mortgage rates could go even lower with the ongoing economic crisis in Europe, it won't be by much, and I would not risk the chance waiting for it.

Be sure to check out today's mortgage rates.

Mortgage Rate Forecast for May 26, 2010

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 102.38 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 102.19 - down 6/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be up to 0.250 points worse in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days from 4-26-2010 to 5-26-2010:

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

• Durable Goods Orders Report - there was a 2.9% increase in new durable goods orders in April, and is much more than the 1.5% increase that was expected. This follows a revised no change in March, a 1.1% increase in February, and a 3.0% increase in January. The large increase is attributed primarily due to an increase in orders for civilian aircraft. However, when the transportation component is excluded, new durable goods orders declined 1.0% which follows a 4.8% increase in March and a 0.9% in February. Year-on-year, overall new orders for durable goods are up 18.9% from April 2009. When transportation is excluded, new durable goods orders are up 18.0% from the same time last year. This report shows that the manufacturing sector continues to gain momentum, and led to higher mortgage rates this morning.
  
  
• New Home Sales - rose 14.8% in April to an annualized rate of 540,000 homes - much more than expected. Analysts were expecting to see an annualized rate of 425,000 homes. In addition, the inventory of new homes on the market dropped to a 5.0 month supply - the lowest level in 42 years. However, the average price of new homes fell 9.7% to $198,400. It's clear that the extended home buyer tax credit helped to sell new homes. As such, we may see a decrease in new home sales now that the homebuyer tax credit has expired. Normally, this data did not have much of an impact on the mortgage market this morning. However, this report is fairly significant and led to higher mortgage rates this morning.

In other news, the Treasury Dept. will be auctioning $42 billion in 5-Year Notes today. The Notes are used to finance the massive government debt. If there is a strong demand for the Notes, we should see the bond market move higher (resulting in lower mortgage rates) during afternoon trading. However, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to a broader selling in bonds and mortgage backed securities. The selling of mortgage backed securities could result in higher mortgage rates.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past year:

Mortgage Rate Lock Advice:

Prices of mortgage backed securities are at their highs of 2010. Yesterday, the price of the FNMA 30-Year 4.5% Coupon closed within 31 basis points of its all-time high of 102.69 which was on November 30, 2009. This morning, the MBS coupon was within 35 basis points of that all-time high. As a comparison, what that means is this: if a 30 year fixed mortgage rate was 4.50% with 1 point yesterday, and if price of the MBS 4.5% coupon were to go as high as 102.69, then the best the 30 year fixed mortgage rate would be is 4.50% with 0.625 point today.

If I were applying for a mortgage today, I would lock the rate as mortgage rates are already at their lows for 2010, and they're probably as low as they're going to go. While it's possible that mortgage rates could go even lower with the ongoing economic crisis in Europe, it won't be by much, and I would not risk the chance waiting for it.

Be sure to check out today's mortgage rates.

The two large GSEs, or government sponsored enterprises, that provide much of the liquidity to the secondary mortgage market are trying to improve their still misbehaving portfolios. Their underwriting guidelines have been steadily getting stricter which will certainly help, but most of the benefits of that will come later. The home loans currently causing such havoc for them were originated around the peak of the real estate bubble and soon after it spectacularly blew up into small particles. Their efforts are now largely focused on putting the breaks on the losses they are presently enduring.

Mortgage lenders requested to repurchase GSE's delinquent paper

When Fannie Mae and Freddie Mac audit distressed mortgage loans in their books and to their utter disbelief discover that their eligibility and underwriting guidelines have not been adhered to they can request the lenders to buy them back. Or they can ask to be compensated for the incurred losses. Fannie Mae's repurchases amounted to $1.8 billion in the first quarter, while at the same time in 2009 the same action brought in $1.1 billion. Freddie Mac, on the other hand, is to rake in $1.3 billion from distressed mortgage loans it sent back in the first quarter, whereas last year in Q1 it took home $789 million. For both the repurchase pace is obviously accelerating, indicating how feeble the housing market remains.

As mortgage lenders and servicers have to take back loans it saps their financial resources, choking in various degrees their channels of originating new ones. It can be especially harmful to mid-size and small banks whose revenue streams are limited, or heavily dependent on the home loan segment. Large lenders can better absorb Fannie Mae's and Freddie Mac's buy-back requests due to their diversification and sheer size. And should they still manage to stumble, as they obviously can with surprising flair, there is always Uncle Sam only a cell phone call away. Basically, that's why the recently-passed Wall Street reform bill was so sorely needed.

The entire mortgage lending platform is still operating under a big caution flag. The two GSEs are desperate to collect on these repurchases to give them some hope of a better future. These requests, however, suck badly needed energy from home loan providers who some time ago sent them carelessly underwritten paper. According to Freddie Mac, at the end of March around 34% of its unsettled buy-back demands were more than 90 days past due. Many mortgage providers simply lack the capacity to honor their contractual obligations. The weak is trying to get the other weak to pay up, making plain how fluid the situation still is.

Mortgage Rate Forecast for May 24, 2010

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 102.19 this morning - the same as Friday's close.
  
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 102.28 - up 3/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be up to 0.125 points better in price this morning as compared to Friday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days from 4-24-2010 to 5-24-2010:

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

• Existing Home Sales Report - released by the National Association of Realtors (NAR), this report provides us with a measurement of housing sector strength and mortgage credit demand. Existing home sales increased 7.6% in April to an annualized rate of 5.77 million homes, the highest level since December, and are up 22.8% from a year ago. First-time home buyers made up 44% of all home sales. However, the inventory of unsold homes decreased 11.5% to an 8.4 month supply which could lead to a further decrease in market values. The housing market may be stabilizing as sales prices of homes firmed up, but the homebuyer tax credit could have had an impact on the surge in home sales. While significant, this report had no impact on the mortgage market or mortgage rates this morning.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past year:

Mortgage Rate Lock Advice:

Prices of mortgage backed securities are at their highs of 2010. Friday, the price of the FNMA 30-Year 4.5% Coupon closed within 50 basis points of its all-time high of 102.69 which was on November 30, 2009. This morning, the MBS coupon was within 35 basis points of that all-time high. As a comparison, what that means is this: if a 30 year fixed mortgage rate was 4.50% with 1 point Friday, and if price of the MBS 4.5% coupon were to go as high as 102.69, then the best the 30 year fixed mortgage rate would be is 4.50% with 0.625 point today.

If I were applying for a mortgage today, I would lock the rate as mortgage rates are already at their lows for 2010, and they're probably as low as they're going to go. While it's possible that mortgage rates could go even lower with the ongoing economic crisis in Europe, it won't be by much, and I would not risk the chance waiting for it.

Be sure to check out today's mortgage rates.

Mortgage Rate Forecast for May 21, 2010

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 102.38 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 102.59 - up 7/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be up to 0.250 points better in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days from 4-21-2010 to 5-21-2010:

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

• There are no economic reports scheduled for release today.

In other news, the lower house of parliament in Germany passed a measure that approves their share ($184 billion) of the $962 billion European bailout package. Germany's upper house, or Bundesrat, is expected to pass the measure later today. Meanwhile, global stock markets as well as the euro, gold, palladium and oil continue to decline on concerns the European debt crisis will slow global economic growth. Prices of mortgage backed securities continue to rise and mortgage rates continue to fall as investors seek safe havens in US notes and bonds.

The Treasury Dept will be auctioning $42 billion in 2-Year notes, $40 billion in 5-Year notes, and $31 billion in 7-Year Notes for a total of $113 billion next week. The Notes and Bonds are used to finance the massive government debt. The results of these auctions could affect mortgage rates next week.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past year:

Mortgage Rate Lock Advice:

Prices of mortgage backed securities are at their highs of 2010. Yesterday, the price of the FNMA 30-Year 4.5% Coupon closed within 31 basis points of its all-time high of 102.69 which was on November 30, 2009. This morning, the MBS coupon was within 7 basis points of that all-time high. As a comparison, what that means is this: if a 30 year fixed mortgage rate was 4.50% with 1 point yesterday, and if price of the MBS 4.5% coupon were to go as high as 102.69, then the best the 30 year fixed mortgage rate would be is 4.50% with 0.625 point today.

If I were applying for a mortgage today, I would lock the rate as mortgage rates are already at their lows for 2010, and they're probably as low as they're going to go. While it's possible that mortgage rates could go even lower with the ongoing economic crisis in Europe, it won't be by much, and I would not risk the chance waiting for it.

Be sure to check out today's mortgage rates.

Mortgage Rate Forecast for May 20, 2010

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.94 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 102.23 - up 10/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be up to 0.250 points better in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days from 4-20-2010 to 5-20-2010:

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

• Jobless Claims - are up again. 471,000 new claims for unemployment were filed last week, and 31,000 more than expected, and 25,000 more than the previous week. This is the highest in over a month, and the biggest increase since February. However, the four-week average for unemployment is down by 7,500 to 453,500. Continuing claims for the week of May 8 is down 40,000 to 4.625 million. All signs indicate the economy has been recovering of late but without much of an increase in jobs. This data is usually not considered to be very important to the mortgage market and had no effect on mortgage rates this morning.
  
  
• Leading Economic Indicators (LEI) - fell 0.1% in April, the first decline in more than a year, and is worse than expected. This follows a 1.4% increase in March and a 0.6% increase in February. This Conference Board report attempts to predict economic activity over the next three to six months. This report indicates that economic activity is not likely to rise in the near future. This report had no impact on the mortgage market or mortgage rates this morning.

In other news, the economic crisis in Europe continues as traders and investors have no confidence in the $962 billion bailout package. Global stock markets continue to decline as investors seek safe havens in US bonds, and the euro, gold, palladium and oil continue to decline as the dollar strengthens. However, keep an eye on the euro which has been attempting to rally against world currencies. While it does not appear likely, if the euro is able to extend its rally, then prices of mortgage backed securities could fall and mortgage rates could rise.

The Treasury Dept will announce later this morning the terms of the Notes and Bond auctions scheduled for next week. The Notes and Bonds are used to finance the massive government debt, and the results of these auctions could affect mortgage rates next week.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past year:

Mortgage Rate Lock Advice:

If I were applying for a mortgage today, I would lock the rate as mortgage rates are already at their lows for 2010, and they're probably as low as they're going to go. While it's possible that mortgage rates could go lower with the ongoing economic crisis in Europe, it won't be by much, and I would not risk the chance waiting for it.

Be sure to check out today's mortgage rates.

Mortgage Rate Forecast for May 19, 2010

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.94 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 101.86 - down 3/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be up to 0.125 points worse in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days from 4-19-2010 to 5-19-2010:

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

• Consumer Price Index (CPI) - the overall index was almost flat again in April - it fell only 0.1%. It was the first decline since March 2009. For the second month in a row, there was no change in the core data which excludes the more volatile food and energy prices. This is one of the most important monthly reports that we see as it measures inflationary pressures at the consumer level of the economy. With unemployment still at high, this report shows that inflation continues to be being held in check even as the overall economy is improving. This report had no impact on the mortgage market or mortgage rates this morning.
  
  
• Minutes from the Last Federal Open Market Committee (FOMC) Meeting - this will give market participants insight into the Fed's thinking and concerns regarding inflation and monetary policy. It is one of those pieces of information that may cause a great deal of volatility in the markets - or it could be a non-factor, depending on what the minutes show. The minutes will be released at 2:00 PM ET. If there are any surprises in the FOMC minutes, especially about inflation or when the Fed may start raising key interest rates, that could cause more volatility in the markets which could affect mortgage rates in the afternoon trading hours.

In other news, the stock markets around the world are being battered. So is the euro, palladium, gold and oil. In addition, Germany banned short selling and CDS trades until the end of March 2012, and is pushing the rest of Europe to adopt the same measure. This signals a growing concern that the $960 billion European bailout package will not work. However, the euro is rallying against the dollar on speculation the European Central Bank will soon announce additional steps to halt the European debt crisis.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past year:

Not sure whether you should lock in your mortgage rate today, or continue floating? Then get today's mortgage rate lock advice sent to you instantly by e-mail.

Be sure to check out today's mortgage rates.

Mortgage Rate Forecast for May 18, 2010

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.53 this morning - the same as Yesterday's close.
  
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 101.62 - up 3/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be about the same in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days from 4-18-2010 to 5-18-2010:

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

• Producer Price Index (PPI) - fell 0.1% in April, and is a reversal from the 0.7% rise in March. This means that prices paid at the producer level fell, and is keeping inflation in check. The decrease in the PPI was attributed mostly to a decrease in food and energy costs. At the core level, the PPI rose 0.2%. The core level excludes the more volatile food and energy prices. Falling prices decreases the fear of inflation and tends to have a positive impact on the mortgage market. While significant, this report had no impact on mortgage rates this morning.
  
  
• Housing Starts - was up 5.8% in April to an annualized rate of 672,000 units, better than expected. Housing starts rose 5.0% in March after falling 5.9% in February. This suggests that the overall housing sector is beginning to improve. However, permits for new constructions fell 11.5% in April following a 5.4% increase in March. Usually, this report has little to no impact on the mortgage market or mortgage rates.

In other news, the stock markets in Asia and Europe have ended their sell-offs and are now improving. This signals a growing confidence the $960 billion European bailout package for Greece will work.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past year:

Be sure to check out today's mortgage rates.

Not sure whether you should lock in your mortgage rate today, or continue floating? Then get today's mortgage rate lock advice sent to you instantly by e-mail.