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The Week Ahead for Mortgage Rates: August 8, 2011

August 8, 2011 by · Leave a Comment 

American Eagle Roller CoasterIn celebration of the 30th anniversary of the American Eagle roller coaster, Six Flags Great America will operate half of the historic wooden roller coaster backwards starting today thru September 17th. Speaking of roller coaster rides, the same could be said of the stock markets, Fannie Mae mortgage bonds, European Union and US credit ratings.

Just when everyone was enjoying the roller coaster ride of positive and better than expected employment numbers on Friday, Standard & Poor’s released an unprecedented decision to downgrade the US Government’s credit rating from AAA to AA+.

International stock markets have been negatively impacted throughout the weekend and needless to say the US stock market is set to open substantially lower this morning.

It will be interesting to see how well received the $72 billion of US Treasury notes and bonds that are to be auctioned off Tuesday through Thursday on the heels of the S&P credit downgrade. Furthermore, will the Federal Reserve address these recent turn of events during their FOMC meeting on Tuesday.

In overseas development, the financial and bond market will be keeping close observation on the progress of the European Central Bank’s plan to buy sovereign bonds from the troubled countries in the EU.

Buckle up and hold on for dear life as this roller coaster ride is set to get a whole lot scarier.

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

Key Economic Reports for Week of August 8th by James Barath

This is The Week Ahead for Mortgage Rates: August 8, 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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