Market Overview, Mortgage News, Weekly Review

What’s News for Mortgage Rates This Week: December 6th

December 6, 2010 by · 1 Comment 

James Barath Asks Where Are The Jobs?Compared to last week’s busy economic report calendar, this week is light on scheduled reports. But between Quantitative Easing 2, Treasury auctions, and the uncertainty in Europe, the volatility in our markets is sure to continue.

Thursday brings the Initial and Continuing Jobless Claims Report. Last week, Initial Claims were reported above expectations at 436,000. However the 4-week moving average did decline to the lowest reading since August 2, 2008.

While this was good news, it was tempered by the weaker-than-expected Jobs Report data last Friday. Remember, we need to see Initial Claims make a sustained movement below 400,000 for the market to feel confident that labor is recovering.

Also, the Treasury will sell $32 Billion in 3-Year Notes on Tuesday, $21 Billion in 10-Years on Wednesday and $13 Billion in 30-Year Bonds on Thursday. It will be interesting to see how these auctions perform in light of the recent spike higher in yields.

Ending the week will be the Consumer Sentiment Index on Friday. It will be interesting to see if consumers will be more upbeat due to the holidays or whether last week’s Employment Report will continue to weigh on consumers thoughts of the overall economy and more importantly their pocket books.

Mortgage bonds and home loan rates have worsened ever since the Federal Reserve announced the start of Quantitative Easing 2 a little over a month ago. Despite this, your opportunity to benefit from low home loan rates still exists for the time being. To get started, contact me for your free consultation and review today.

This is What’s News for Mortgage Rates This Week: December 6th.

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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