Doubts about the final approval of a viable Greek fiscal rescue package and a profit taking sell-off in the stock markets have combined to support the prospects for steady to fractionally lower mortgage interest rates today.
Mortgage investors largely shrugged off as "old news" an early morning report from the government indicating March factory orders rose a stronger-than-expected 1.3%. The surge in factory orders in March had been largely telegraphed by the more current April Institute of Supply Management's manufacturing activity report yesterday.
From this point forward mortgage investors will spend the balance of the week positioning themselves for the April nonfarm payroll data series due out on Friday morning at 8:30 a.m. ET. Most analysts expect the economy produced 2000,000 new jobs in March -- while the national jobless rate remained at 9.7%. If the consensus estimate values prove accurate, look for mortgage interest rates to remain little changed. On the other hand, should headline payrolls improve by 210,000 or more and/or should the national jobless rate slip to 9.6% or lower you can virtually "take-it-to-the-bank" mortgage investors will respond by pushing mortgage interest rates notably higher.
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