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What’s News for Mortgage Rates This Week: February 28th

February 28, 2011 by · Leave a Comment 

Oscar Awards 2011Stuttering was put on center stage as “The King’s Speech” was the big winner at the Academy Awards last night. When it comes to your home loan decision, we want you to be as clear as possible and keep you on your way to your own personal Oscar. 

This week oil markets will continue to drive interest rates and the US equity markets. Crude is being driven as you know by civil tensions in an increasing number of countries in the Mideast and in North Africa.

While there hasn’t been much new out of the region for the past few days, the fears continue that oil production and distribution will be disrupted will continue. If there is any doubt that oil supplies and demand are at critical melting points the recent spike in oil should alleviate any questions.

The US economy has been on a path of recovery with almost every economic data point has been better than estimates. The new and increasingly important question now is, will consumers draw back with the price of energy expected to increase even more. Talk of $4.00 a gallon gasoline is presently dominating investor thinking. $4.00 gas will very likely lower discretionary consumer spending if in fact it occurs. Meanwhile recent economic measurements are being debated on the premise nasty weather in most of the US in January and February has distorted norms.

This is employment week. On Friday the employment report is expected to show the unemployment rate to have increased to 9.1% from 9.0% in February, non-farm jobs +180K, non-farm private jobs +193K. If we get those numbers and just 0.2% increase in hourly earnings and there is a relaxation in the oil markets this week interest rates will likely increase.

We continue our view that the only reason we have seen the recent decline in mortgage rates has been due to the civil unrest in the Mideast and North Africa. The calendar this week has the following key economic reports:

Key Economic Reports for Week of February 28th by James Barath

This is What’s News for Mortgage Rates This Week: February 28th.

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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