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What’s News for Mortgage Rates This Week: February 14th

February 14, 2011 by · Leave a Comment 

Mortgage Rates and the Economy Are Starting to Heat UpJust like the weather this past weekend, both the economy and mortgage rates have begun to heat up to everyone’s surprise.

The mortgage bond market continues their bearish trend and outlook. The economy is improving and with the threat of inflation still high, mortgage rates will continue to be pressured higher and will not show much improvement.

Ben Bernanke is still holding firm to complete his Quantitative Easing 2 plan to buy $600 Billion of treasury through the end of the 2nd quarter. Debate now is whether the Fed will try another easing move with Quantitative Easing 3. Highly unlikely in our opinion, nevertheless if the economy were to falter and unemployment increases Bernanke will not hesitate.

Bernanke is scheduled to speak again on Friday this week on global imbalances and financial stability at Banque de France Financial Stability Review in Paris.

After last week with little in the way of economic releases, this week the economic calendar has a number of key data points. Nothing on Monday nor Friday but mid-week is loaded with key economic reports.

  • Tuesday: All eyes will be on January Retail Sales. January Import and Export Prices will also be released along with February Empire Manufacturing. Business Inventories for December will also get mentioned. The real estate industry will be paying close attention to the February NAHB Housing Market Index.
  • Wednesday: The health of the housing industry will be front and center as MBA Mortgage Purchase Index, Housing Starts and Building Permits will be released first thing in the morning. The health of the economy for businesses will also be front and center with the release of the January Producer Price Index, Industrial Production and Capacity Utilization. The official Fed Minutes will also be released from the FOMC meeting held on January 26th.
  • Thursday: The economic outlook for consumers will be the focus with the release of the January Consumer Price Index, Weekly Initial Claims and Continuing Claims. The last report for the week will be the February Philadelphia Fed Index which is another regional manufacturing gauge.

This is What’s News for Mortgage Rates This Week: February 14th.

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

If you or someone you know is thinking about buying a home, the combination of low home loan rates and affordable home prices make this an ideal time to buy a home. Want to know if you can afford a new home? Call or text me at 512-522-7284 to discuss your personal situation and your home loan options!

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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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