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The Week Ahead for Mortgage Rates: July 11, 2011

July 11, 2011 by · 2 Comments 

US Edges Brazil in 2011 World Cup Thriller by James BarathIn what was undoubtedly the most shocking and thrilling event of the weekend the US women’s soccer team advanced into the 2011 World Cup semifinal. After falling behind 2-1 to a Brazilian team that had all the momentum, the US Women’s Soccer team overcame what appeared to be an insurmountable disadvantage of one less player to win on penalty kicks. 

Just like the US Women’s Soccer team, mortgage rates bounced back in favor of home shoppers when financial markets were shocked by the dismal employment numbers on Friday. Not only were there just 18,000 jobs added in June, but also the unemployment rate increased to 9.2 percent.

If last week was all about jobs, then this week it’s all about inflation both on the producer and consumer level. With fears of a double-dip recession fully ingrained in the minds of economist the negative sentiment on the overall economy is no longer a shock but the reality.

Mortgage bonds are still benefiting from the financial crisis overseas in Greece and Italy. If the European Union can come to an agreement on how to settle the ongoing debt issue than the US mortgage bond market would suffer. As-is, mortgage bonds are overbought and are poised for a sell off. If that occurs it would mean higher mortgage rates in the immediate future.

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

Key Economic Reports for Week of July 11th by James Barath

This is The Week Ahead for Mortgage Rates: July 11, 2011.

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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2 Responses to “The Week Ahead for Mortgage Rates: July 11, 2011”
  1. In relation to the beginning of this post, I happened to see Pierre score a win in the top of the 9th for the Sox this weekend! If the unemployment rate would pull out a win like they did, everyone would be happy and buying homes. Fortunately, our local market isn’t as bad as the national. In fact, home prices, inventory and price per square foot are trending upward as days on market are drastically being reduced.

  2. Of course there were other great moments in sports this weekend, like Derek Jeter; however, we need a little consistency if want to build a winning team. This is also true of the economy. We need consistent employment growth just to stay up with population growth. It’s great to hear that real estate market in Northwest Indiana is stabilizing. If you wan to see the real estate market fully rebound, then we need more jobs.

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