Market Overview

What’s Ahead for Mortgage Rates this Week: July 27th

July 27, 2009 by · Leave a Comment 

Mortgage markets carved out a wide range last week, creating a mixed bag for mortgage rate shoppers. 

Rates were much improved on Monday and Tuesday, much worse on Wednesday and Thursday, and idle for most of Friday. 

Overall, mortgage rates improved slightly but don’t expect the volatility to subside. 

There is a ton of economic data scheduled for release this week — at least one new data point per day, actually. Each could cause mortgage rates to rise or fall:

  • Monday : New Home Sales
  • Tuesday : Consumer Confidence
  • Wednesday : The Fed’s Beige Book
  • Thursday : Initial Jobless Claims
  • Friday : Personal Consumption Expenditures

If the data points to a rosier outlook for the U.S. economy, expect that mortgage rates will rise.  If data looks weak, rates should fall.

There’s another factor influencing rates this week, too, and that’s the U.S. Treasury’s plan to sell its most weekly debt in history. Across four separate auctions, the government is selling $115 billion in notes.  If the notes are in low demand, bond prices will fall, pushing up rates.

Indirectly, this should cause mortgage rates to rise.  If demand is very weak, mortgage rates should rise by a lot.

This week in mortgage markets is among the most eventful we’ve seen all year.  Expect mortgage rates to be on the move.

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James K Barath, CMPS®

James K Barath is a Certified Mortgage Planning Specialist®, Certified FICO® Professional, Certified Military Housing Specialist® and your FHA Home Loan Expert. He is also a graduate of Purdue University, The CMPS Institute, Dale Carnegie Human Relations Course & Napoleon Hill Foundation's PMA Science of Success Class. It's your home and your future. It's his profession and his passion. He is ready to work for your best interest. Contact James for your FREE Home Loan Approval !  His Motto: I Facilitate the American Dream Through Responsible Mortgage Lending and Financial Literacy!

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