Market Insight, Mortgage News, Mortgage Rates

The Week Ahead for Mortgage Rates: February 11, 2013

February 11, 2013 by · Leave a Comment 

Homebuilder Confidence ImprovesMortgage rates worsened last week in Northwest Indiana in response to more indications that the U.S. economy and global economic trends are improving.

Global economic data was stronger than expected; which generally boosts investor confidence and leads to higher mortgage rates in Northwest Indiana and across the country.

According to Freddie Mac, the average rate for a 30-year fixed rate mortgage was 3.53 percent with borrowers paying all of their closing costs and 0.8 percent in discount points along with a full complement of closing costs.

Click here to see today’s mortgage rates.

The U.S Department of Commerce reported that Factory Orders for December improved over November; they rose from 0.0 percent in November to 1.89 percent in December, but fell short of Wall Street’s expectation of 2.5 percent.

The ISM Services Index for January was released Tuesday and fell to 55.2 from December’s reading of 56.1 and was slightly higher than against investors’ expectations of 55.0.

Readings above 50 indicate expansion of the service sector of the economy. The ISM Services Index is also an indicator of future inflationary pressure.

Click here to see today’s mortgage rates.

Homebuilders Say Markets Improve For 6th Consecutive Month

On Wednesday, the National Association of Home Builders (NAHB) released its NAHB/First American Improving Markets Index (IMI), which provided good news for housing markets in all 50 states and Washington, D.C. Metro housing markets surveyed showed expansion of improving markets for the sixth consecutive month.

259 of the 361 metro areas surveyed in the IMI showed improvement in February. By comparison, only 12 improving metro markets were reported for September of 2011.

Click here to see today’s mortgage rates.

Increasing home prices and mortgage rates suggest that now may be the time for buying a home.

The weekly Jobless Claims report released on Thursday indicated that 366,000 new claims were filed, which was higher than Wall Street’s estimate of 360,000 new jobless claims, but lower than the previous week’s 368,000 new jobless claims.

Falling U.S. Trade Deficit Signals Economic Uptick

Click here to see today’s mortgage rates.

The best economic news for last week came on Friday, when the U.S. trade deficit fell to its lowest level since January 2010.

The Trade Balance Report for December shows the trade deficit at -$38.5 billion against expectations of -$46 billion and November’s deficit of -$48.7 billion.

While a great boost for the economy, this is another indicator that recent low mortgage rates and home prices may soon become history.

Click here to see today’s mortgage rates.

Economic News scheduled for this upcoming week includes U.S. Treasury Auctions set for Tuesday, Wednesday and Thursday. Pay particular attention to foreign-demand and participation.

Retail Sales for January will be released on Wednesday and watched closely by investors. Retail sales account for approximately 70 percent of the U.S. economy and are viewed as a strong indicator of the economy’s direction. Jobless Claims on Thursday, Industrial Production and Consumer Sentiment on Friday round out the week’s economic reports.

This is The Week Ahead for Mortgage Rates: February 11, 2013.

Click here to see today’s mortgage rates.

Quick general rule of thumb when keeping an eye on mortgage rates.

Strong Economic News: $$$ from Bonds —> Stocks = Home Loan Rates Go Up

Weak Economic News: $$$ from Stocks —> Bonds = Home Loan Rates Go Down

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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