Mortgage interest rates April 25 2017

Lots of economic data to go over this morning as mortgage interest rates for April 25, 2017 remain under pressure. This morning we’ve seen CaseShiller, New Home Sales, Richmond Fed and Consumer confidence.  We also are seeing reports out of Europe that the ECB may be making a more “hawkish” changes to their policy as it looks like Le Pen will lose the run off election in France.  Lots of things to take in as mortgage interest rates are set to be slightly worse compared to yesterday.

Mortgage interest rateCaseShiller home price index was up 5.8% in February which is the fastest rate in three years.  Those polled were expecting a 5.7% increase so the reading was a bit stronger than expected.  Housing affordability continues decline as home prices rise and low-mid income wages remain stagnant.  California home loan rates are helping in that the remain historically low however their positive affect is becoming less as time goes on.  New Home Sales hit an 8 month high as we start the Spring buying season.  The reading hit to a 5.8% increase which was a higher than expected by analyst polled which results in an adjusted annual rate of 621k units.  The expectation was for New Home Sales to decline by 0.8% so the 5.8% increase is a significant beat.  The Richmond Fed manufacturing index also beat estimates and came in at 20 (estimates were for a reading of 16). Consumer confidence came in a bit weaker than expected.  The expectation was for a 122.5 reading and it came in at 120.3.  The news out of Europe probably is having the biggest influence on mortgage interest rates on April 25, 2017.  Due to the French election and the belief that Le Pen (far right candidate) will lose.  If so then the ECB is expected to take a more hawkish stance to policy initiatives.  Hawkish is generally a negative for bonds and Dovish is more favorable.  Since it looks like France will elect a centrist the ECB is less worried about policies that might cause a downturn in economic expansion due to protectionism.