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What’s News for Mortgage Rates This Week: May 30th

May 31, 2011 by · 2 Comments 

Memorial Day 2011 by MemorialDay2011.orgFormerly known as Decoration Day and celebrated on the last Monday of May, Memorial Day is a day of remembrance to all the men and women who have given their lives protecting the American Dream. The quintessential American Dream has always been home ownership and I’m proud to be a facilitator.

Memorial Day traditionally also marks the beginning of summer grilling season and mother nature did not disappoint with the heat index reaching 100 degrees following a week of rain and tornadoes. Not only has the temperature start to rise, but so has gas prices once again. Rising gas prices and higher air conditioning bills will definitely impact home affordability.

In housing news this morning the Case-Shiller Home Price Index showed a decline in March. The highlight of the report was the fact that the price index came in below the April 2009 low during the financial crisis. Just remember that this is an assessment of the 20 largest metropolitan areas in the country. If you want to know what’s going on in Northwest Indiana, just ask one of the contributing Realtors on this site.

Mortgage rates benefited last week over the international concerns of the debt issue in Greece. In a surprise announcement over the Memorial Day weekend; however, the European Union may be working to bail out Greece. If that were to happen, there would be a reversal of money out of US Treasuries which recently have helped home loan rates. Home loan rates could be set to rise higher based on a confirmed bail out of Greece.

More important than what is going on in Europe is the monthly release of the Employment Report. Early estimates are for 185,000 non-farm jobs to have been added in May. Keep a close eye on the unemployment rate as this will be important to whether or not real job growth is occurring. Sustainable job growth would be a much needed stimulus to the overall economy and the housing industry.

The economic calendar this week has the following key economic and financial reports:

Key Economic Reports for Week of May 30th by James Barath

This is What’s News for Mortgage Rates This Week: May 30th.

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

2 Responses to “What’s News for Mortgage Rates This Week: May 30th”
  1. It’s ironic that when the national news seems to be negative, we are seeing prices spiking up locally in many of the communities–suggesting robust action in the market. Perhaps that is simply the lag between what we see grass roots and how statistics are compiled and reported nationally. Or, also a likelihood, maybe we are in a different cycle here in NWI?  Which is your view?

  2. When you read the national real estate headlines, they tend to be focused on big markets that had unsustainable double-digit appreciation during the housing boom. Those same real estate markets are now feeling the pain in the opposite direction. Unlike the big markets, Northwest Indiana never had outrageous appreciation which is the reason that we haven’t experienced as much heartache. That’s why you have to deal with full-time Realtors such as yourself who know the local market.

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