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The Week Ahead for Mortgage Rates: November 21, 2011

November 21, 2011 by · Leave a Comment 

The Thanksgiving Table by sjlocke | iStockphotoe.comThe Super Committee has failed to reach any compromise on the budget and is driving markets this morning. The mortgage bond markets should hold through the week but unlikely to see any decline in mortgage rates due to a holiday shortened week. The rest of the world doesn’t celebrate Thanksgiving so it business as usual outside of the US.

No compromises on taxes and spending cuts by the Super Committee means that automatic spending cuts will occur totaling $1.2 Trillion and affect some social programs. With 2012 just around the corner, both Democrats and Republicans will most likely sit on their hands as not to cause too much outrage with their voters.

The US Treasury will auction $99 Billion of notes beginning today with $35 Billion in 2 Year Notes.$35 Billion of 5 Year Notes will be auctioned on Tuesday and $29 Billion of 7 Year Notes will be auctioned on Wednesday. The stability of Europe and their ongoing debt crisis still has would-be investors on the fence about pouring more cash into sovereign debt.

October Existing Home Sales beat expectations and was up 1.4% to 4.97 million homes. Interesting facts from the Existing Home Sales report showed that only 28% of sales were distressed compared to the prior months 30%. With the help of a lower median sales price, the housing inventory declined to an 8 month supply.

Although the US Economy has not recovered as quickly as many would like, we must be thankful that we are not in the same economic and financial crisis as Europe. Happy Thanksgiving!

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

Key Economic Reports for Week of November 21st by James Barath

This is The Week Ahead for Mortgage Rates: November 21, 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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