Daily Market Update 5/30/12

Mortgage rates inched lower Wednesday as concerns about Europe hurt stocks and boosted mortgage-backed securities.  Borrowing costs in Italy and Spain have moved significantly higher in recent days due to uncertainty over the banking sector.  In economic news, Pending Home Sales fell by 5.5% in April to the lowest level since December.  An increase of 1.0% had been expected.  The Mortgage Bankers Association weekly purchase activity index declined by 1.3%, while the refinancing activity index fell by 1.5%.  Average reported 30-year fixed rates hit another new low, at 3.91%, not including fees.  No other key data will be released today.