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Triangle Business Today

Jobless claims flat; rates at another historic low

Posted May 24, 2012

Jobless claims for last week were delivered essentially flat Thursday with a reduction of 2,000 to 370,000 – not a great figure, and the report didn’t do much to move the economic gauge.

Durable goods increased Thursday, but did fall short of analysts’ expectations. This less-than-stellar U.S. economic data, coupled with weak European manufacturing data would have normally put significant downward pressure on yields and mortgage rates, but instead we experienced an anomaly with Treasury prices dipping a bit.

Even with the slight rise in yields, mortgage rates are still trading at historic lows.

Speaking of those mortgage lows, the Freddie Mac weekly rate survey indicated that we officially reached a new low on fixed rates this week. It seems like that has been a weekly point of discussion, and, as we’re now in the thick of the Euro negotiations, it does seem that the natural outlet for investors during this time of great uncertainty is into U.S. Treasuries. As you know by now, the "flight to quality" that we’re experiencing has provided great stimulus to a housing market which continues to need it in great quantities both here in North Carolina and across the nation.

On Friday, the bond market closes at 2 p.m. for the holiday weekend, and we’ll receive the University of Michigan’s Consumer Sentiment Report at 10 a.m.

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About this Blog:

Jeremy Salemson, CEO of Corporate Investors Mortgage Group, blogs about economic trends and data and their impact on Triangle business. Each week, he interviews a Triangle-area business leader for a personal look at the local economy.