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What’s News for Mortgage Rates This Week: April 4th

April 4, 2011 by · Leave a Comment 

McDonald Ads 21 - 40 Clever Advertising CampaignsOn the heels of another positive Employment Report this past Friday, McDonald’s announced this morning that it will hold it’s first national hiring day to fill 50,000 jobs. This should be a clear sign that large corporations are beginning to see positive signs for the overall economy.

Unlike the barrage of economic reports last week, there is not much this week in the way of economic reports.

The two economic reports of significance this week will be the release of the March ISM Services Sector Index and the details of February Consumer Credit. Recent spikes in oil prices have likely caused consumers to cut back on other spending. The level of borrowing using credit cards should be watched.

This week the European Central Bank (ECB) will meet with expectations that the bank will increase its base rate as inflation in Europe has pushed up above the ECB target of 2.0%.

The Federal Reserve will release on Tuesday the minutes from the last FOMC meeting on March 15th. Recently there has been an increase of the number of Fed officials that are wanting less easing and an end to Quantitative Easing 2 (QE 2).

Global base lending rates are increasing and the Fed will have to follow the pack soon in order to stay competitive. We do not expect the Fed will increase its base lending rate immediately; however, the first step will be ending QE 2, whether it ends prematurely is where the debate centers.

Mortgage rates are still sensitive to stock market direction, global duress and most importantly inflation talk. The calendar this week has the following key economic reports:

Key Economic Reports for Week of April 4th by James Barath

This is What’s News for Mortgage Rates This Week: April 4th.

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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