Rate Watch update

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Happy Friday May 28, 2010

Mortgage rates worsened on Thursday as China announced their support of European Bonds; goes to show how just the hint of stabilizing the European financial situation leads to higher U.S. mortgage rates.  Time will tell whether China delivers.

In U.S. news the Personal Consumption Expenditure (PCE) index, the Fed’s favorite gauge of inflation, came in today at 1.2% year-over-year, within the Fed’s target of 1% to 2%.  This was bond friendly news so mortgage rates are getting back some of yesterday’s losses.  This is evidence of how volatile mortgage rates are now, with significant moves on just about any type of news.

Next week we have Pending Home Sales and Unemployment numbers released, so should be interesting.

Have an awesome Memorial Day Weekend, take a minute to remember those who have helped us keep this a free nation.

Thanks,

Mike