Market Overview, Weekly Review

What’s News for Mortgage Rates This Week: September 13th

September 13, 2010 by · Leave a Comment 

Last week was a tumultuous week for mortgage rate shoppers as the mortgage bond market sold off in the wake of better than forecasted August Jobs Report and Consumer Confidence. In matter of fact, it took less than 48 hours for mortgage rates to increase nearly 0.250% as money from the bond market transitioned to equities in the stock market.

Although mortgage rates did rise last week, homeowners and home buyers still have access to some of the lowest mortgage rates in recorded history. As the economy improves money will continue to move back to the stock market at the expense of higher mortgage rates. Historic low mortgage rates are only good if you seize it; otherwise, it is just small talk.

Following a weekend of tributes and remembrance to all those who were injured, lost their lives, or lost loved ones on September 11, 2001, this week has begun subdued. The stock market will be the big influence today on mortgage rates.

Market volatility will begin to heat up starting Tuesday. The Retail Sales Report will be released tomorrow and could move mortgage rates higher if it comes in better than forecasts.

Wednesday will be focused on the manufacturing sector with the release of the Empire State Index, Industrial Production and Capacity Utilization. In months past, these reports have been uneventful.

Fireworks are sure to fly on Thursday and Friday as inflation talk will be the buzz topic of every media outlet. The Producer Price Index and Philadelphia Index will be reported on Thursday. Consumer Price Index and Consumer Sentiment Index will be released on Friday.

Let’s not forget the weekly Initial Jobless Claims Report on Thursday. Analysts and traders will be paying particular attention to see if the weekly trend is still improving and if the Continuing Claims remain steady.

This is What’s News for Mortgage Rates This Week: September 13th.

Quick general rule of thumb when keeping an eye on mortgage rates.

Strong Economic News: $$$ from Bonds —> Stocks = Home Loan Rates Worsen

Weak Economic News: $$$ from Stocks —> Bonds = Home Loan Rates Improve

Want to see what other economic reports might impact home buyers and home refinance options in the coming week? Visit the Mortgage Market Update and check out the Economic Calendar.

Buying a house? The last thing you want is to buy more house than you can really afford. Check out the Mortgage Market Guide View for a simple formula that can help you calculate which home to buy.

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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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