Mortgage Market Summary 5/24

Financing

Mortgage Market Commentary

Despite some strong economic data, mortgage rates were unable to move upward, last week. Industrial Production leapt upward by a solid 1.0%, the largest increase in over three years. While Housing Starts did slip slightly, homebuilder confidence remains very high. The LEI also increased another 0.3%, notching its eighth consecutive increase. However, it seemed that every news cycle was dominated with trouble for the new presidential administration. It appears that the probability of many of the “pro-business” legislative actions is getting pushed further out with each new revelation.

This week is likely to see mortgage rates staying level or even slipping slightly. The biggest economic data point due is the second estimate of the first quarter’s GDP. While it is expected to be adjusted upward, only an adjustment over about 1.1% would have the influence to pressure rates upward much. If we experience another week of challenging information for the President and his associates, then rates could be depressed even more on expectations of  Washington gridlock.