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What’s News for Mortgage Rates This Week: April 18th

April 18, 2011 by · Leave a Comment 

Easter Lily Holy WeekThis week is Holy Week which not only includes Palm Sunday, but also Spy Wednesday, Holy Thursday and Good Friday. Both the stock and bond market will likely be quiet with the celebration of the religious holiday.

Most all of the key economic reports this week are centered on the housing sector. It started with the National Association of Home Builders (NAHB) / Wells Fargo Housing Market Index this morning which showed builder sentiment slipped again.

On Tuesday, March Housing Starts and March Building Permits will be published. Mortgage Banker Association Mortgage Purchase Index and March Existing Home Sales will be released on Spy Wednesday. Holy Thursday will provide the Weekly Initial Claims and Continuing Claims, as well as reading on the April Philadelphia Fed Business Index and February FHFA Housing Price Index.

Until a week ago the overwhelming consensus in the markets was that the US economy would have a strong Q1 and optimism for the rest of the year was being touted as continued improvement. Over the past week investors were beginning to re-think the economic outlook and lowering expectations. It started with the IMF revising GDP Q1 growth lower from 2.0% to 1.5%; markets had accepted growth in Q1 at +3.0%.

The Fed’s Beige Book out last week, while remaining optimistic, showed indications that growth isn’t as powerful as markets were thinking. The National Federation of Independent Business overall index fell in April, taking the optimism that had improved since last October null and void.

The decline in consumer spending, until recently, have been ignored by investors. Even with gasoline and food prices increasing markets generally didn’t pay much attention that is until last week. $4.00+ gasoline prices and rapidly increasing food prices will, as we have continued to mention, slow consumer spending. With consumer spending less than expected and the housing markets still showing no signs of stabilizing, investors are getting a little nervous.

US stock and bond market will be closed on Good Friday. Therefore, expect many traders to exit early on Thursday as they will take advantage of an extended holiday weekend. The calendar this week has the following key economic reports:

Key Economic Reports for Week of April 18th by James Barath

This is What’s News for Mortgage Rates This Week: April 18th.

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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