Rates React to Durable Goods Orders Increase
25 April 2007
Mortgage Market Outlook: Float
Mortgage rates increased today as stronger than expected news showed Durable Goods Orders up.
March’s Durable Goods Orders increased to 3.4%, far in excess of the forecast of 2.5%. This is a sign of strong manufacturing activity and is bad news for mortgage rates as it may be a sign of inflationary pressure.
March’s New Home Sales report was also released today. It was up over February’s numbers but was much lower than expected. It is good news for mortgage rates as it shows a continued weakness in housing, but has less of an impact than the Durable Goods Orders report.
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