Mortgage Market Update

Please enjoy this quick update on what happened this week in the housing and financial markets.

	Stagnant business inventories point to a contraction in GDP. Rates would normally decline on the news but instead are being driven higher by the global bond sell-off. *Note: The rate gauge shows weekly movement. Rates have moved up incrementally, so a week’s change does not always register on the gauge.

	Bond market sell-offs are pushing yields higher across the globe. Concurrent selling in the mortgage bond market pushes mortgage rates higher too.

	The price of goods at the wholesale level fell in April, a sign that inflation is still not a threat. Without inflation, the Fed should be in no rush to tighten monetary policy.

	NAR continues to warn Realtors about the upcoming TRID changes. Richard Cordray says that there are no plans to delay the deadline on the new forms.

	Foreclosure activity continued to decline in March. Completed foreclosures are now down over 65% from their peak in September 2010.

	Access to credit increased in April according to the MBA’s Credit Availability Index. Increased access to credit was led by new VA, FHA 203K, and Jumbo offerings.

Please contact me for any questions or a customized interest rate quote.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.