Today's Mortgage Outlook

After a two day losing streak, mortgage rates have improved for the better after a rally in the benchmark Treasury market helped move mortgage-backed security prices higher causing lenders to reprice mortgage rates for the better.

There were two main factors which attributed to this this week. First, the Department of Commerce released monthly Housing Starts and Building Permits data. Secondly, the Consumer Sentiment Report was released which surveys 500 households about their personel finances and feelings about the economy.

Today’s released indicated both housing starts and permits were better than expected in March. Housing starts moved higher by 1.6% this month to it's highest level since November 08. Be cautious however, bad weather in February as well as the expiration of the Federal Homebuyers Tax credit at the end on the month could very well affect those numbers.

The Consumer Report, released twice monthly showed a decline from 75 to 69.5 which is being blamed on the job market reports which showed unemployment at still higher than anticipated rates.

Right now, rates are still at historic low's with the 30yr Fixed hovering at 4.875% and the 15yr Fixed at 4.25%. 5/1 ARM's continue to be attractive at 3.625%.