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What’s News for Mortgage Rates This Week: December 20th

December 20, 2010 by · Leave a Comment 

Merry Meals Proud Community Sponsors | Benchmark Mortgage and James BarathIt will be a holiday shortened week, with the Bond Market closing at 1:00pm CDT Thursday and both the Stock and Bond Markets closed Friday in honor of the Christmas holiday. Before you check out for the holiday festivities, make sure to tune in to what news could impact mortgage rates this week.

Wednesday brings a read on the economy with the Gross Domestic Product Report, which is the broadest measure of economic activity.

A double dose of housing news will start with Wednesday’s Existing Home Sales Report and followed up with Thursday’s New Home Sales Report.

Big inflation news comes on Thursday with the Personal Consumption Expenditure (PCE) Index, which is the Fed’s favorite gauge of inflation, plus there’s also the Personal Income and Personal Spending Reports, which give us some information on the consumer perspective of the economy.

Thursday’s Initial and Continuing Jobless Claims Reports will also tell us if the good trend continues – last week’s Initial Claims was the second lowest number seen during 2010, and also the third decline in four weeks.

It’s important to understand that mortgage rates do not simply rise in a straight line. In fact, mortgage bonds and home loan rates did have a late-week rally last week. That trend of mortgage rates worsening with improving dips here and there like we saw last week may be what’s in store for us in the weeks ahead.

Be alert to the fact that the ongoing and potential addition of futher stimulus from the Federal Reserve, combined with the stimulus from the tax cust, will make it tough for mortgage bonds and home loan rates to return to the levels seen earlier this year.

With that being said, the good news is that home loan rates are still extremely attractive right now. If you have been thinking about buying a home or refinancing your existing home, contact me to get started today.

This is What’s News for Mortgage Rates This Week: December 20th.

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.

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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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