Market Overview, Weekly Review

What’s News for Mortgage Rates This Week: November 1st

November 1, 2010 by · 2 Comments 

Buckle by Brooklyn Hilary | Flickr.comPut on your seatbelt – it will be an exciting week ahead! We will see the midterm elections this Tuesday, the FOMC Meeting and following Monetary Policy Statement coming on Wednesday, and the all-important Jobs Report on Friday.

On their own – each one would have the ability to create volatility in the financial markets… but having all three in a row certainly spells an exciting and interesting week ahead. I’ll be staying closely tuned – and we’ll break down all the events in next week’s issue.

In addition to those three big events, we’ll see economic reports on Personal Spending, Personal Income, and Personal Consumption Expenditures (PCE) – which measures price changes in consumer goods and services – on Monday.

We’ll also see some important employment news leading up to the official Jobs Report on Friday. First up is the ADP National Employment Report on Wednesday, which measures nonfarm private employment. That will be followed the next day with another round of Initial Jobless Claims.

In last week’s report, Initial Jobless Claims were reported at 434,000, which marked the third straight decrease in Claims and the lowest level since early July. That was definitely an improved number… but we can’t get too euphoric until we see the Initial Jobless Claims reaching the 400,000 mark and steadily moving lower from there.

And as if that weren’t enough excitement for the week, we’ll see more housing news with Pending Home Sales on Friday. Regardless of what these economic reports say, it’s bound to be a roller coaster ride with all the big news items on tap – contact me this week if you have any questions about how home loan rates are moving.

This is What’s News for Mortgage Rates This Week: November 1st.

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.

Are you finding it more difficult to save? Do you want to know practical and effective strategies to spending less and keeping more? Check out the Mortgage Market Guide View for The Top 10 Ways to Save.

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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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2 Responses to “What’s News for Mortgage Rates This Week: November 1st”
  1. James, please comment on Quantative Easing, and how this relates. Having lived through the inflationary times of the 1980, it bothers me to hear that the Fed is cranking up the printing press again to create more cash from thin air, in order to stimulate the floundering economy. Sounds like their quiver is running out of arrows. Give us your analysis and prognosis.

  2. Steve – Quantative Easing is the process of where the Federal Reserve attempts to inject new money into financial channels so as to increase the velocity of money throughout the greater economy. The way that the Federal Reserve proposes this time around is to buyback Treasury Bonds that banks already own which hopefully trickles into more lending, more spending, etc… Sounds great in theory, but the biggest downfall is by injecting so much new money into the economy also devalues the US dollar against other foreign currencies.

    At the end of the day, investors will follow the highest returns. The real questions to be asked are will companies begin to open their wallet to spend and will the quantative easing really be passed through to the consumer?

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