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What’s News for Mortgage Rates This Week: May 2nd

Osama Bin Laden Is No Longer Public Enemy Number One

The biggest news from the weekend flashed across televisions and news wire worldwide and it had nothing to do with the Royal Wedding. In case you were a sleep or just not into listening to the news, Osama Bin Laden was killed last night ending a 10 year manhunt for the world’s public enemy number one. 

The news of Osama Bin Laden’s death immediately impacted value of the dollar, raised stock index futures and lowered US crude oil prices. Investors worldwide will continue to pour money into the US stock market but where exactly will be the key.

On the home front, this is employment week and although citizens are celebrating right now Friday may tell a different story. The Employment Report is expected to show a gain of 183,000 non-farm jobs, 200,000 non-farm private jobs and the unemployment rate unchanged at 8.8%.

Before the big report on Friday, there are a number of data points that will get attention. Today the April ISM Manufacturing Index showed a decline which reinforced the regional Federal Reserve survey that suggested a pullback in purchase managers activities. April ISM Services, non-manufacturing, will be released on Wednesday with no change expected. Overall, April manufacturing is expected a little weaker but only slightly.

The economic recovery is slowing, Q1 GDP a month ago was expected up 3.0% to 3.5%, the first look last Thursday was an increase of just 1.8% and Q2 is also seen as slowing. The bellwether 10 yr note hit 3.29% mid-day Friday and likely doesn’t have much more left, 3.25% is about all we expect.

We are somewhat less negative on mortgage bond than just a month ago, home loan rates will likely go up from now through the rest of the year. The calendar this week has the following key economic reports:

Key Economic Reports for Week of May 2nd by James Barath

This is What’s News for Mortgage Rates This Week: May 2nd.

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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