Market Overview, Mortgage News, Weekly Mortgage Market Preview

What’s News for Mortgage Rates This Week: February 7th

February 7, 2011 by · Leave a Comment 

Super Bowl XLV is History by James BarathThe Super Bowl is history and congrats to the Green Bay Packers.

After a big increase in mortgage rates last week the bond market will have new money supply to contend with this week. Treasury will conduct its quarterly refunding beginning Tuesday with $32B of 3yr notes, Wednesday $24B of new 10 yr notes and Thursday $16B of new 30 yr bonds.

After the 10 yr note increased 29 basis points in yield and the 30 yr bond up 14 basis points the auctions should see good demand. This week doesn’t provide much data, in fact only weekly jobless claims that carry any significance.

The bond and mortgage markets have solidly broken out of their long tight technical ranges to higher rates. The 10 yr note appears to have a clear path to 3.75% while mortgage rates are likely to increase another 10 to 15 basis points in rate.

Concerns of higher interest rates in Europe, China and the rest of the BRICs as well as improving economic conditions domestically will keep US rates from falling with the most likely path being up for mortgage rates. One key thing to keep in mind, US interest rates remain as low as we have had for generations. If lenders don’t see it as a positive consumers certainly won’t.

This is What’s News for Mortgage Rates This Week: February 7th.

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. Call or text me at 512-522-7284 to discuss your personal situation and your home loan options. Your path to home ownership starts right now!

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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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