Mortgage Rates Poised to go lower as Economic Data Disappoints Investors

Mortgage rates are poised to head lower on weak economic news. 30 Year mortgage rates already near historic lows will be going lower this week on news of slower forecast growth in service industries and employment.

ADP Employer Service’s tally of job growth in April was 179,000, not as high as the median forecast of 198,000. Another factor that will drive rates lower is the Institute for Supply Management said its gauge of non-manufacturing companies is at the lowest level in eight months. Weak economic forecast sent 10 year Treasury yields are down to 3.21% this morning and as a result will force mortgage rates lower.

30 year conforming mortgage rates today are averaging 4.70%. Today's 30 year jumbo mortgage rates are averaging 5.20%. I won't be surprised if we see 30 year jumbo rates hit 5.00% sometime this month.

Conforming 15 year mortgage rates are now under 4.00%, the first time in a couple of months. Current 15 year mortgage rates are averaging 3.98%. 15 year jumbo mortgage rates are also lower today. Current 15 year jumbo rates are averaging 4.57%.

Average mortgage rates are reported by MonitorBankRates.com.

 
Author: Brian McKay
May 4th, 2011

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