Mortgage Interest Rate Update 5.3.2012

Despite a drop in the weekly jobless claims number the Mortgage Backed Securities (MBS) market is holding up fairly well this morning.  FNMA-30 (3.5) is only down a tick.  A bit of good news for bonds is labor costs are lower which means less pressure on growing inflation.  Oil and Gold are down and stocks are generally flat to slighly in the red. European Central Bank President Mario Draghi stills sees significant headwinds in the European recovery but believes Europe is on the right course.  His comments had little to no affect on bond market interest rates.

Mortgage rates continue to be stable going into the monthly jobs report tomorrow.