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Mortgage rates which are not tied to the Fed funds rate are signaling for future US economic growth.  Mortgage rates fluctuate daily depending on sentiment on how the US economy will be in the future, unlike short term rates that are fixed by the Fed.  As the economy gets worse, the mortgage rates drop, while currently the rates have increased with bullish predictions for the 6 months to a year in the future.  Current 30-Year rates are around 6.3%, where they were only 6.06% last week and below 6% two weeks ago.

The Dow continues it’s march down as it’s almost below the 12,000 point mark.  Oil prices continue to rebound from a quick drop.  Every time oil drops a little, it keeps moving to higher highs in this oil bull market.  Dow stocks are starting to look very good to value investors.  While the economy might keep them down for a few years, stocks like General Electric (GE) are paying investors 4% dividends while continuing to increase earnings during the tough part of the economic cycle. 

The Federal Reserve reported that consumers increased their borrowing at an annual rate of 7.2%, well above the 3.1% rate in  February.  The gain was larger than expected and shows an increase in borrowing on credit cards and auto loans.  The credit card increases show distressed borrowing by consumers who need cash. 

The DOW has broken through the crucial 13,000 points.  A better than expected round of 1st quarter earnings has given investers a reason to be optimistic about the future of the economy.  The better than expected economic data flowing out has also helped the US dollar jump back up from it’s current long term decline.

The commerce department reported that the sale of new homes dropped 8.5 percent in March, the lowest sales pace since October of 1991.  The median new home price dropped by 13.3 percent compaired to the year ago prices.  This data continues to show the slump the housing market is going through since the bursting of the housing bubble.  The perfect economic storm continues as the housing market, upcomming recession, and tough credit crunch are continuing to destroy the current US economy.

The Dow continues to rise as it has for the past couple weeks.  Posting a huge 3.19% gain yesterday.  While 30 Year Mortgage rates have started increasing again.  Average 30 Year rates are currently 5.75% up from 5.72% last week and 15 Year rates are currently 5.29% up from 5.22% last week.  Mortgage rates while up lately are still around historic lows.