Mortgage rates are unchanged today.
The meat of the economic calendar for the week begins today. Earlier this morning it was reported that retail sales for March were better than expected. This is good news for the economy but as we know this can pressure rates higher.
Inflation still does not appear to be a major threat which is GREAT news for mortgage rates. The Consumer Price Index increased by .1% last month and when you strip out volatile food & energy prices the CPI was unchanged. This will give the Fed greater flexibility in keeping short-term rates accommodative to help the economy.
Speaking of the Fed, Chairman Ben Bernanke delivered a mixed message to Congressman today. In his testimony he stated that the Fed expects economic growth to remain slow but also neglected to use the term “extended period” when describing how long they’ll will keep rates low.
From a technical standpoint mortgage-backed bonds face stiff overhead resistance so I’ll continue to recommend a locking bias.
Current outlook: locking