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

March 28, 2011 by · Leave a Comment 

NCAA Championship Game: Butler v DukeMarch Madness continues and I’m not referring to the NCAA Men’s Basketball Tournament. Although we should congratulate Butler University for being the first university in the state of Indiana to make it the Final Four in consecutive years.

Unlike last week there are events and data points everyday for the bond and mortgage markets to consider. This is employment week with the March Employment Report on Friday. Early expectations are for non-farm jobs to increase 185,000 with non-farm private jobs up 203,000. The unemployment rate is expected to be unchanged at 8.9%.

In the meantime February Personal Income and Spending was released earlier this morning in line with expectations. March Consumer Confidence will be released on Tuesday. Weekly Jobless Claims, along with the Chicago Purchasing Manufacturers Index will be announced on Thursday. Friday the ISM National Manufacturing Index will be released and take a back seat to the Employment Report.

Above and beyond the economic data this week, there will also be several Treasury Auctions. A combined $99 Billion in US Treasuries will be auctioned as follows: Tuesday $35 Billion of 2 yr notes, Wednesday $35 Billion of 5 yr notes and Thursday $29 Billion of 7 yr notes. Foreign participation and demand has been okay recently, but not quite as strong as auctions last year.

Recent better than expected earnings reports and relaxing of concerns from Japan has boosted equity markets and interest rate markets consequently are taking on a more negative technical pattern. We remain bearish for the outlook on rates, however we are not looking for rates to move substantially higher.

It should be noted that the primary reason the bond and mortgage markets rallied recently was over safety moves on the Japanese nuclear problems. That said, mortgage rates are still temporarily tied directly to stock market direction and global confusion. The calendar this week has the following key economic reports:

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

This is What’s News for Mortgage Rates This Week: March 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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