Market Overview, Mortgage News, Weekly Review

What’s News for Mortgage Rates This Week: January 3rd

January 3, 2011 by · Leave a Comment 

What's News for Mortgage Rates This Week January 3rd by James BarathLast week was a great example of the volatility that has been the norm in 2010 for the Bond market and home loan rates. But in the end, mortgage bonds and home loan rates were able to finish the week strong. So what’s next?

As nearly all of the key economic reports due out this week are rated as having the potential for a high impact on the markets, the New Year will kick off with a bang!

  • We started off right away this morning with the ISM Index. This is the king of all manufacturing indices and is considered the single best snapshot of the factory sector. For the 17th straight month in December, US manufacturing grew and a separate report showed construction spending hit a five-month high. This bodes well for the overall US economy.
  • Tuesday brings us the first release of FOMC Minutes of the year. Although the Fed has already released its policy statement, the markets will be examining the minutes closely for indications of the Fed’s thinking regarding important topics like inflation, rates, and the overall economy.
  • We’ll also see some important employment news this week. First up is the ADP National Employment Report on Wednesday, which measures non-farm private employment. The report is expected to show fewer jobs created in December than the previous reading of 93,000 jobs created in November.
  • The ADP Report will be followed the next day with another round of Initial Jobless Claims on Thursday. In last week’s report, Initial Jobless Claims was reported at the lowest level since July 2008. That was good news for the labor market, but we still need to see if this report was skewed by the holidays or if it was the start of a trend lower in new unemployment claims.
  • The big news of the week will be the release of the all-important Jobs Report this Friday. The Average Work Week and Unemployment Rate are expected to hold steady, while Hourly Earnings and Non-Farm Payrolls are expected to rise.

Volatility in the mortgage bond market and home loan rates will continue into 2011. Despite overall negative trend, home loan rates are still near historic lows. This may not be the case in the weeks and months ahead.

If you’ve been thinking about buying a home or refinancing your existing home, contact me today to discuss your goals and how you can take advantage of the volatility in the Mortgage Bond market.

This is What’s News for Mortgage Rates This Week: January 3rd.

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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