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The Week Ahead for Mortgage Rates: October 31, 2011

October 31, 2011 by · Leave a Comment 

Frankenstein monster halloween card by pepmax | iStockphoto.comIf you’re a fan of Halloween and enjoy the thrill of being scared out of your wits, the month of October had plenty to offer. Despite the S&P 500 having a stellar month there was much to fear domestically and internationally throughout the month.

Two events will dominate the headlines this week and I’m not referring to Halloween nor Greece.

Following the 2 day FOMC meeting on Wednesday, Ben Bernanke will hold a press conference. It will be important to hear what he has to say since the last FOMC meeting on September 21st when the Fed announced Operation Twist. If you recall, Operation Twist was intended to keep long term mortgage rates low in an effort to help the housing market.

Operation Twist worked for one day. Unfortunately, mortgage rates and interest rates have increased since the last FOMC meeting.

The other significant report this week will be the Employment Report on Friday. October employment is expected to show positive gains, but not as strong as September. At this point, all eyes are on the unemployment rate of 9.1% which has not fluctuated this year. It appears that the only thing that politicians are scared of is losing their job and not the state of the economy.

Although it’s the season to be frightful, staying calm and collected will get you through the home loan process. Otherwise, you just might be zombified from the gluttony of paperwork.

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

Key Economic Reports for Week of October 31st by James Barath

This is The Week Ahead for Mortgage Rates: October 31, 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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