Concerns over Europe and China and their economic growth has created a positive impact on mortgage interest rates. On Friday the key employment date, which remains at about 5%, had little effect on mortgage rates. The speculation is that there is a 10% chance that the Feds will raise rates at their June meeting.
Over the past week we have seen economic news from Europe and China that the European Union has cut its growth forecast for the eurozone for 2016 and 2017. China’s PMI manufacturing index fell to a level that suggest the industry is contracting. When global economic growth slows it means less inflation for the American economy which is good news for interest rates.