Monday Market Commentary: Mortgage Rates Rise Slightly

by Alex Stenback on April 30, 2007

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                                                          Graphic Courtesy MSNBC
Last Week:
Mortgage rates ticked up midweek (on mostly technical factors) ahead of Friday’s first quarter GDP figures, which showed a less than expected 1.3% growth rate (versus an expected 1.8%.) Normally, a GDP number like this would send rates lower, but this news was offset by an up-tick in the Employment Cost Index – showing some wage based inflation.  Inflation = bad news for bonds = lower rates unlikely.
This Week:
As we write this entry, mortgage rates are improving slightly after the release of the Personal Consumption Expenditure core deflator (another measure of inflation) which showed an increase in prices paid by consumers YOY of 2.1%, short of the 2.2% consensus figure.  While this is a mortgage rate friendly report, keep one eye on Friday, which is when the April jobs report – a key measure of economic strength – is released.  A weak jobs report may send rates lower, a strong report could send mortgage rates up.

See Full Economic Calendar After the Jump:

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Click image for Bigger

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