Mortgage note rates are unchanged but the associated closing costs are slightly higher this morning. Better than expected economic news from the US and abroad are pressuring interest rates higher.
The Commerce Department reported today that home building climbed to the highest level in a year and a half raising optimism about the battered housing industry. The monthly index showed that a significant jump in multi-family dwellings was the primary cause for the increase.
Germany reported today that business and consumer confidence improved this month creating optimism that the European bellwether may be able to ride out the crisis. Good news for the economy is bad news for mortgage rates.
The US Treasury is scheduled to auction $35 billion in 5-year notes later today. The 5-year note is currently offering a meager yield of about .85% which may be hard to attract demand in light of today’s positive economic news. A weak auction could put further upward pressure on rates.
Current Outlook: neutral