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The Week Ahead for Mortgage Rates: July 25, 2011

July 25, 2011 by · 1 Comment 

NFL Lockout Continues - Chicago Bears Forte by James BarathJust when everyone thought the NFL lockout was over when the team owners signed the dotted line late last week, the players hesitated to agree to the terms and requested more time to review the details of the new collective bargaining agreement.

The NFL lockout is very reminiscent of the debt ceiling talks on Capitol Hill as Democrats and Republicans are firm on their party positions. Politicians have not yet come up with a plan that will allow the Treasury to avoid default on August 2nd.

Best case scenario is that both the NFL and politicians come to an agreement this week. Even though no one believes the US will default, it’s the details of what Congress legislates in regards to the debt ceiling on whether or not the rating agencies will lower the US bond rating from AAA to AA2.

The on-going troubles in Europe with potential defaults on debt in Italy, Greece, Spain, Portugal and Ireland will also impact the desirability of US bonds on a global level regardless of the adjustment to US bond ratings.

While the general public has become frustrated and tired of the negotiation process, it’s just another day in the real estate industry for those who actively negotiate purchase agreements. It is all too common for real estate agreements to fall apart over the details and some real estate deals have taken just as long as the NFL lockout and the politcal process to come to an amiable agreement.

The US Treasury will be borrowing another $99 billion with auctions of 2 yr notes on Tuesday, 5 yr notes on Wednesday and 7 yr notes on Thursday. This will definitely add more fuel to the fire on the debt ceiling debate.

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

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

This is The Week Ahead for Mortgage Rates: July 25, 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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Comments

One Response to “The Week Ahead for Mortgage Rates: July 25, 2011”
  1. Thanks James! You always have good information although Congress does nothing but disgust me!

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