Weekly Mortgage Rate Commentary

From some perspectives, last week was a good week for economic data. While there were no clear signs that the economy is rebounding, there were some signs that this economic slump may be short-lived. GDP for the 1st quarter of 2008 came in at a meager 0.6%, which was above what many experts were predicting. More encouraging news came from the labor market. The US economy lost 20,000 jobs, again fewer than most estimates. While most experts were predicting an unchanged or increased unemployment rate, the rate actually ticked down to 5.0%. Other data still points to challenges, but we're seeing some hopeful signs. While the Fed did adjust rates down by a '/4-point, they omitted a phrase from their policy statement indicating they have some optimism for the future.

This week has significantly less data than last week for markets to consume. Mortgage rates may not move too much as we continue to wait for more indications of the economy's health. However, any signs that housing is recovering could spur some investor interest in mortgages and move rates lower.

Paul Cantor ican be reached at (804) 433-1510 or at www.PaulCantor.com.