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The Week Ahead for Mortgage Rates: September 26, 2011

September 26, 2011 by · Leave a Comment 

I've Got the Keys by sjlocke | iStockphoto.comNew single-family homes sales declined in August by 2.3 percent. The good news is that the seasonally adjusted annual rate declined less than expected. Even better news is that 2011 year-to-date new single-family homes sales rose 6.1 percent.

The question remains will there be other green sprouts for the stock market to latch on with the barrage of key economic reports to be released later in the week.

Speaking of key economic reports, global markets will be paying close attention to September Consumer Confidence on Tuesday; 2nd quarter final GDP; and August Personal Income and Consumption on Friday. Let’s not forget about the month end Treasury Auctions of 2 year notes, 5 year notes and 7 year notes totalling $99 Billion.

While stock and bond traders review the economic data domestically, Europe still continues to be a harbinger of bad economic news. The inability of the European Union (EU) and the European Central Bank (ECB) to come up with a resolution to the Greece financial crisis has global investors still concerned. It appears that the EU and ECB do not have sufficient enough capital to rescue Greece right now.

If you missed the big news out of the FOMC meeting last week, it’s all about “Operation Twist”. You can read the details about the Federal Reserve Announces New Twist to Stimulate Economy. In layman terms, the FED is about to refinance their short-term debt into longer-term debt to maximize cash flow. This is very similar to what homeowners are doing right now in this historic low home loan rate environment.

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

Key Economic Reports for Week of September 26th by James Barath

This is The Week Ahead for Mortgage Rates: September 26, 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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