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What’s News for Mortgage Rates This Week: April 25th

April 25, 2011 by · 1 Comment 

Ben Bernanke 2009 TIME Person of the YearBen Bernanke is already in focus this week as the Federal Open Market Committee is scheduled to meet on Wednesday. Financial markets worldwide generally pay close attention to the official FOMC policy statement and the addition or lack of verbiage from the previous FOMC policy statement.

The Fed Chairman, for the first time, will hold a 45 minute press conference shortly after the official FOMC policy statement. Bernanke’s sole purpose for the immediate press conference is to increase certainty and add stability to worldwide markets. He hopes to make it crystal clear exactly what the Fed is observing and their strategy to improve the economy.

Good news on the real estate front. New single family home sales increased more than expected according to the March New Home Sales report released this morning. New home prices fell from a year ago but homebuyers should take this as a positive sign.

US  Treasury will auction another $99 billion of 2 year (Tuesday), 5 year (Wednesday) and 7 year (Thursday) notes this week. It will be interesting to see the results of the 5 year note as it is scheduled to occur between the Fed’s policy statement at 12:30 PM and Bernanke’s press conference at 2:15 PM on Wednesday.

Thursday will also be a day of interest as Weekly Jobless Claims coupled with the first look at Q1 GDP will provide insight as to which direction if any the US economy is really heading. This week also has a huge number of Q1 earnings reports that will set the tone for the equity markets. So far earnings overall have generally beaten Street estimates.

Technically, mortgage bonds are looking good as inflation worries fade. Do not expect much change in home loan rates until Wednesday’s FOMC meeting. The calendar this week has the following key economic reports:

Key Economic Reports for Week of April 25th by James Barath

This is What’s News for Mortgage Rates This Week: April 25th.

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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Comments

One Response to “What’s News for Mortgage Rates This Week: April 25th”
  1. mivideo says:

    Well, now that the all the excitement is over regarding the “historical” press conference, is anything really going to be much different? Is the Fed going to be any more transparent in their future announcements? While I am just a lowly layman observer when it comes to Things Fed, it seems like more of the same to me. What was your impression about the Big Event yesterday?

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