Mortgage News, Real Estate News, Weekly Mortgage Market Preview

The Week Ahead for Mortgage Rates: July 18, 2011

July 18, 2011 by · Leave a Comment 

Netflix Apple TV by James BarathThe quickest way to lose customer loyalty and trust is by changing the terms of an agreement. Don’t believe me? Just ask Netflix as they have had negative backlash since last week when they announced a change in their business model and pricing.

Likewise, home buyers and home sellers can be very sensitive to any type of changes in the real estate transaction. For instance, ask a home seller to lower their home list price based on the latest release of housing data. Better yet, inform a home buyer that their home loan rate and loan fees just increased.

The primary economic report for this week is the July Philadelphia Fed Index which is expected to show improvements although still negative. Housing data will be focus for the remainder of the key economic reports this week with the release of July NAHB Housing Index, June Building Starts and Permits, June Existing Home Sales and the May FHFA Home Prices.

Mortgage bonds continue to benefit from the financial crisis overseas in Europe as Italy and Greece become secondary role players as the focus turns to Ireland, Portugal and Spain. Depressed global economies continue to keep US mortgage bonds in uncharted territory as global funds exit out of equity markets.

How long can these historic mortgage rates last? It will all depend on how world markets perceives the safety of US debt. Keep a close eye on the progress or lack thereof of the political wrangling on Capitol Hill about the US debt and budget mess. One thing for certain is that there will be plenty of volatility in both the bond and equity market this week.

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

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

This is The Week Ahead for Mortgage Rates: July 18, 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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