Market Overview, Mortgage News, Weekly Mortgage Market Preview

What’s News for Mortgage Rates This Week: April 11th

April 11, 2011 by · Leave a Comment 

Government Shutdown 2011 courtesy of Allvoices.comIf you thought last week was a very tense time on Capitol Hill as politicians were willing to gamble on whether or not a budget could be agreed upon, this week might be the precurser to an all out battle royale over the 2012 fiscal budget.

President Obama is scheduled to speak on Wednesday as he will outline his 2012 budget after finally coming to aggrements to increase the debt limit. Besides spending cuts that will impact Medicare and Medicaid, it will be of extreme importance to learn how the US will increase tax revenues.

Speaking of raising money, the Treasury will auction $66 Billion of new notes and bonds beginning Tuesday.

The retail and manufacturing sector will be on center stage this week  with the release of March Retail Sales, March Producer Price Index, March Consumer Price Index, April Manufacturing Index, March Industional Production and March Capacity Utilization.

As gas prices have sky rocketed through out Northwest Indiana, inflation concerns continue to increase everywhere except at the Fed. Ben Bernanke believes the recent increase in raw prices and most all commodities as a transitory event. Bernanke is more concerned that the US economy is still fragile.

While that is the case, investors and the markets are moving out of fixed rate investments and into commodities especially gold as a hedge against what private markets increasingly believe, that inflation will get traction by the end of the year.

The current consensus is that the Fed will not begin to tighten their monetary policy until late this year. There are however increasing numbers of economic analysts that are beginning to adjust to rate hikes sooner. By the time the Fed actually does increase the Federal Funds Rate markets worldwide will have mostly adjusted for higher rates.

The mortgage bond market remains bearish. Look for continued pressure on mortgage rates to increase over the next several months. Mortgage rates are still sensitive to stock market direction, global unrest and most importantly inflation. The calendar this week has the following key economic reports:

Key Economic Reports for Week of April 11th by James Barath

This is What’s News for Mortgage Rates This Week: April 11th.

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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