With little news, mortgage rates barely moved for the first four days last week.Friday's weaker than expected GDP data was favorable for mortgage rates, however,and caused rates to end the week a little lower.
GDP, which measures all the goods and services produced in the US, is the broadest measure of economic growth. First quarter GDP increased at a 2.5% rate, which was below the consensus forecast, but was up from 0.4% in the fourth quarter. Strength was seen in consumer spending and residential investment. Most economists expect that GDP growth will be a little slower for the rest of the year and will be around 2.0% for all of 2013. This pace is consistent with a slowly improving labor market and tame inflation.
From the start of the year until early March, expectations for stronger economic growth and concerns about an early end to the Fed's bond buying program caused mortgage rates to increase. Since then, however, mortgage rates have fallen back to the lowest levels of 2013.
Mortgage rates are down from a week ago.
The 10-year US Treasury Note is at 1.67%, down .04since last time.
Credit Spread (10yr UST vs. FNMA Current Coupon) 1.33, from1.31last time. Appears we have established a new range in the 1.30’s.
Current 30-year Fixed 3.375%. Jumbo 5/1 ARM 2.25%.
Of note, the conforming 5/1 ARM is now at 2.25%, the 7/1 at2.50%.
I am always happy to help with any mortgage questions and/or pre-approval.