Mortgage rates fall

Might the Fed really be behind the curve after all? Excerpt from USA Today:

Mortgage rates have come down. Even though the Federal Reserve pushed short-term interest rates higher June 30 for the first time since 2000, 30-year fixed-rate mortgage rates dipped near 6% the past week — the lowest since this spring, said mortgage giant Freddie Mac.

It was the third week of decline, after a run-up in anticipation of Fed action.

The decline in mortgage rates was most probably a response to the disappointing jobs report for June.

The number of new claims for jobless benefits did drop last week though -- to a seasonally adjusted 310,000, the lowest level in more than three years. This was far better than what economists were expecting.

But seasonal adjustments related to temporary closings of auto plants for annual retooling for new model cars may have masked the true trend.

Probably more significant is the fact that the four-week moving average of new claims dropped last week by a seasonally adjusted 10,250 to 336,000, the lowest level since May 22.