Bad News Out of Chicago Helps Lower Mortgage Rates

By Stevie Duffin Updated on 3/2/2015

Mortgage bonds were stronger this morning, aided in part by a veritably weak Chicago PMI reading. Hitting its lowest levels since February 2009, Chicago PMI came in at 45.8, far below the expected 58 and a grim fall from January's 59.4. Keep in mind that any reading over 50 marks upturn and expansion; readings below 50 point to decline. 

GDP data was mixed, but considering its alignment with expectations did little to boost MBS buying. This fourth-quarter 2014 reading showed 2.2 percent expansion and 2014 as a whole averaged 2.4 percent, at least higher than the previous three years' average of 2.2 percent. 

For now, watch for falling mortgage interest rates. 

Thursday: Mortgage bonds are in weaker territory today, despite a stronger morning. Durable goods orders came in higher than the expected, jumping 2.8 percent in January. CPI data came in poor, falling 0.7 percent last month and marking the biggest slip since December of 2008. Jobless claims came back heavier than predicted, hitting 313,000 and well above the predicted 290,000. More market movement could come today with treasury auctions, but for now watch for rising mortgage interest rates.

Bookmark this page for daily mortgage rate updates:

• 30 year (FRM) rates at 3.79% (+0.02).
• 15 year (FRM) rates at 3.09% (+0.02).
• FHA 30 year Fixed rates at 3.50% (0.00).
• Jumbo 30 year Fixed rates at 3.78% (+0.02).
• 5/1 ARM rates at 3.13% (+0.02).