Mortgage Interest Rate Update 04.01.2013

Mortgage interest rates remain steady and still elevated above Nov/Dec 2012 levels.  We have seen improvements in the bond market over the last 5-10 days so there is a decent chance mortgage rates will improve if the bond market continues to improve (or at a minimum hold steady).  The fallout from the events in Cyprus are helping to keep bond yields low however the strength of the equity market is (somewhat) preventing further improvements in yield.  California refinance applications continue to decline for the most part while purchase activity is up.  The “sequester” fears seem to overblown (at this point) and the market essentially considers it a non event.  We have not seen yields impacted at all (up or down).  For the past three years April-May-June have been the beginning of a “slow down” in the economy, declining yields and stock market sell offs.  Is this year going to be different?