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The Week Ahead for Mortgage Rates: December 27, 2011

December 27, 2011 by · 1 Comment 

Man Gesturing Thumbs Up by -Marie- | iStockphoto.comTis the season for surprises! Once again to the surprise of many, Consumer Confidence Index surged in December to a near post-recession peak. Following a surge in November, Consumer Confidence is sparking new hopes of an economic recovery.

As equity and bond markets were officially closed on Monday, it is anticipated that this entire week will be light in volume as many traders have closed their books and are now enjoying the festivities of the holidays. It should be no surprise that Wall Street opened to the down side this morning.

With very little on the agenda this week, housing took one on the chin this morning as the Case-Shiller Home Price Index showed home prices declined in October. After last weeks positive news in real estate with an increase in November Building Permits and Homes Sales, much of the hype about a sustained housing recovery has been squashed. Pending Homes Sales for November will be of interest as 2011 comes to end this weekend.

Mortgage rates and mortgage bond prices are still trading in a relatively narrow range. The price on the 3.5 FNMA coupon traded in 80 basis point price range this past week due to light volume which created more volatility as there were less traders at their desk. We remain skeptical that US interest rates will decline much from their present levels. The long-term outlook is that mortgage rates will begin to slowly increase from present levels.

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

Key Economic Reports for Week of December 27th by James Barath

This is The Week Ahead for Mortgage Rates: December 27, 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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  1. […] About the Author:  James K Barath is a Certified Mortgage Planning Specialist, qualified liability advisor 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 Barath today for your Borrow Smart Analysis – the CALM Approach to Borrowing !  His Motto: I Facilitate the American Dream Through Responsible Mortgage Lending and Financial Literacy!Source: welcomehomenwi.com […]



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