It was another good week for mortgage rates. Concerns about the level of global economic growth and about the progress of reforms in Europe were favorable for mortgage rates, which ended the week lower.

Nearly all of the major economic data released this week reflected slower economic growth. In the US, GDP, Durable Orders, and Chicago PMI manufacturing all were significantly weaker than expected. The news was similar in Germany and Japan. It was reported that China is considering another round of stimulus to combat slowing economic growth. Weaker growth reduces future inflationary pressures, which is positive for mortgage rates.

The uncertainty in Europe increased this week as protests in Spain and Greece highlighted the resistance to austerity measures in troubled countries. Spanish officials released a 2013 budget this week which included significant spending cuts and riots resulted. Measurement of the progress of reforms in Greece by international inspectors was postponed until after the November 6 US elections. In short, investors are still uncertain that unpopular austerity measures will be put in place by political leaders in troubled countries. The result is a shift to relatively safer assets, which also is positive for mortgage rates.

The biggest US economic report next week will be the important Employment data on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Before the employment data, ISM Manufacturing and Construction Spending will be released on Monday. ISM Services will come out on Wednesday. The detailed Minutes from the September 13 Fed meeting will be released on Thursday. News from Europe, particularly Spain, is likely to influence US mortgage markets as well.

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