Week Ahead

What’s News for Mortgage Rates This Week: January 31st

January 31, 2011 by · Leave a Comment 

Political Unrest in Egypt is the Latest Fuel to Mortgage Volatility by James BarathThe news last week demonstrated that economic conditions are improving, but they are doing so gradually. As a result, the market remains volatile, as Mortgage Bonds and home loan rates move up and down depending on what reports or speeches hit the news wires.

Mortgage Bonds received a bit of a bump at the end of last week, helping home loan rates recover from losses earlier in the week. This boost was prompted by political turmoil in Egypt that had worldwide investors seeking the safety of Bonds.

The markets will continue to watch the political unrest in Egypt closely this week. In addition, a number of high-impact reports will hit this week with the big news coming this Friday!

  • We start off right away Monday morning with reports on Personal Spending and Personal Income, as well as the Personal Consumption Expenditures (PCE) Index, which is the Fed’s favorite gauge of inflation.
  • Manufacturing will also be in the news this week. On Monday, we’ll see the Chicago PMI, which surveys more than 200 Chicago purchasing managers about the manufacturing industry and is a good indicator of overall economic activity. Then on Tuesday, the ISM Index will be released. This is the king of all manufacturing indices and is considered the single best snapshot of the factory sector.
  • The big topic of the week will be employment. First up is the ADP National Employment Report on Wednesday, which measures non-farm private employment.
  • The ADP report will be followed by another round of Initial Jobless Claims on Thursday. In last week’s report, Initial Jobless Claims came in well above expectations. We shouldn’t read too much into that spike, since weather could have played a sizable role in the jump. However, if readings over the next couple weeks don’t settle back down closer to the 400,000 level, there may be reason for concern.
  • Finally, the busy week culminates in the all-important Jobs Report on Friday. This report features new data regarding Non-Farm Payrolls, the Average Work Week, Hourly Earnings and the Unemployment Rate. Needless to say, this report can be a big market mover!

The good news is that despite the volatility, home loan rates remain extremely low for now and present a tremendous opportunity for home buyers who lock in at the opportune moment.

This is What’s News for Mortgage Rates This Week: January 31st.

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

To learn more about the volatility and how you or someone you know can benefit from a knowledgeable Certified Mortgage Planner like myself, please call or text me at 512-522-7284. I’ll be happy to discuss the current economic climate and what it means to your personal situation and your home loan options.

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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What’s News for Mortgage Rates This Week: January 24th

January 24, 2011 by · Leave a Comment 

Great Time to Buy a Home by James BarathIn housing news last week, Existing Home Sales for December were reported much better than expected. The jump in sales is likely attributed in part to the recent trend of rising home loan rates, which has prompted many homebuyers to take advantage of the still low home loan rates.

Building Permits – which signal future construction – also came in better than expected last week, surging 17% in December. 2011 looks to be on track for agood year for the housing industry.

There will still be some areas that suffer price declines and those will be where foreclosure backlogs overhang and where unemployment rates are even higher than the national average. But housing has bottomed out in many areas and should see more of a pick up in the second half of 2011.

And although home loan rates will likely rise slightly as the year progresses, they are still near all-time lows right now. That means homebuyers still have a tremendous opportunity in front of them.

Both mortgage bonds and home loan rates maintained their overall negative trend last week and ended the week worse. This week includes a full load of economic reports ranging from housing and the economy – but the big event will be the Fed Meeting.

  • We’ll start the week with a read on consumer attitudes with the Consumer Confidence report on Tuesday. That report will be followed by the Consumer Sentiment Index on Friday.
  • We’ll also see additional housing news this week, with a report on New Home Sales in December due out Wednesday and the Pending Home Sales report for December due out Thursday.
  • The Federal Reserve will also hold its FOMC meeting this Tuesday and Wednesday, with the Fed’s Policy Statement due for release Wednesday afternoon. There’s no chance for an interest rate hike at this meeting – but what the Fed says about the economy, inflation, and its Quantitative Easing program could have an impact on rates.
  • Thursday’s weekly Initial and Continuing Jobless Claims Report will be important, as always. Last week Initial Jobless Claims came in below expectations and the 4-week moving average fell from the previous week. Those readings tell us the trend in the labor market is continuing to improve…albeit at a slower pace than historically seen at this stage within an economic recovery.
  • We’ll also get a read on the economic recovery with Durable Good Orders on Thursday. This report gives us an update on consumer and business buying behavior on big-ticket items that are designed to last for an extended period of time, like furniture, televisions, appliances, vehicles, copy machines, and so on. It’s an interesting report, as people tend to hold back on these types of purchases when they are feeling a need to be extra conservative with their finances or feel insecure about their employment.
  • The GDP report will be followed on Friday with reports on Gross Domestic Product (GDP) – which is the broadest measure of economic activity – and the Employment Cost Index (ECI). The ECI is one way to evaluate wage trends and the risk of wage inflation, as well as possible price pressures. This is important to the housing industry because if wage inflation threatens, it is possible home loan rates will rise through Bond prices dropping.

This is What’s News for Mortgage Rates This Week: January 24th.

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. Call or text me at 512-522-7284 to discuss your personal situation and your home loan options. Your path to homeownership starts right now!

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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Week Ahead

What’s News for Mortgage Rates This Week: January 17th

January 17, 2011 by · Leave a Comment 

Martin Luther King Jr US Postal Stamp uploaded by James BarathIt is another holiday shortened week ahead, as both the Stock and Bond Markets are closed today in honor of the Martin Luther King, Jr. holiday. But the rest of the week has plenty of news in store, including a read on the housing market.

Although mortgage bonds and home loan rates ended the previous week about the same place as where they began, both mortgage bonds and home loan rates had their ups and downs. The week ahead may see much of the same.

  • There’s a double dip of real estate news with Wednesday’s Housing Starts and Building Permits Report and Thursday’s Existing Home Sales Report. Analysts are expecting to see a bump higher in Existing Home Sales to a 4.80M pace, and some moderate improvement on the new construction side as well.
  • There’s also a double serving of manufacturing news. Tuesday’s Empire State Index looks at New York State’s manufacturing sector and is a good gauge of manufacturing overall, while on Thursday we’ll also see the Philadelphia Fed Index, another important report.
  • Thursday’s weekly Initial and Continuing Jobless Claims Report will be an important one to watch this week. Last week Initial Jobless Claims came in at 445,000, well above expectations of 415,000 and the highest reading in two months. Was this spike just a paperwork backlog because of the holidays? Will this week’s claims be close to that 400,000 mark that will show the labor market is continuing to improve?
  • Earnings season continues with reports from Citigroup, Apple, Google, GE, Goldman Sachs, and more.

This is What’s News for Mortgage Rates This Week: January 17th.

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

So what should you do if you have been thinking about buying a home or refinancing a home in Northwest Indiana? Call or text me at 512-522-7284 to discuss your personal situation and your home loan options.

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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What’s News for Mortgage Rates This Week: January 10th

January 10, 2011 by · 1 Comment 

This past Friday, we learned that the labor market continues to improve. According to the Labor Department, 103,000 jobs were created in December and private job growth was at 113,000. Although job growth missed expectations, upward revisions to the prior two months showed 70,000 more jobs than previously reported.

The most noteworthy part of the Jobs Report was the decline in the unemployment rate to 9.4 percent.

What's News for Mortgage Rates This Week January 10th by James Barath

Mortgage bonds have started the week in positive territory with help from the Fed’s scheduled purchase of $7 billion to $9 billion treasury notes later this afternoon and an additional $7 billion to $9 billion on Tuesday.

Even though it may be cold outside, both the financial market and mortgage bond market will heat up toward the end of the week with the following key economic reports set to be released.

  • Get ready for a double dose of inflation news with Thursday’s Producer Price Index Report, which highlights inflation at the wholesale level, and Friday’s Consumer Price Index Report, measuring inflation for consumers… that’s you and me! Remember: The Fed is intent on creating inflation, which is unfriendly to home loan rates, and signs of inflation from these reports could be unfavorable for rates.
  • On Thursday, all eyes will be on the weekly Initial and Continuing Jobless Claims Report. Last week, Initial Jobless Claims came in at 409,000, part of an encouraging trend that shows claims are getting closer to that important 400,000 mark, which represents a sign of continuing improvement in the labor market.
  • Lastly, Friday will see the release of the Retails Sales Report for December, as well as the Consumer Sentiment Index. Will they show that the Fed’s plans to stimulate the economy are working?

The bottom line for right now is that the familiar chant “Don’t Fight the Fed” continues to ring true. The Fed is intent on creating inflation, lowering the unemployment rate and raising Stock prices…and they have already been somewhat successful. Quantitative Easing 2 will likely keep coming until the employment picture improves significantly, and this is all going to be unfriendly for Mortgage Bonds and home loan rates ahead.

So what should you do if you have been thinking about purchasing or refinancing a home? The good news is that home loan rates are still extremely attractive right now, so call or text me at 512-522-7284 today.

This is What’s News for Mortgage Rates This Week: January 10th.

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

Want to see what other economic reports might impact home buyers and home refinance options in the coming week? Visit the Mortgage Market Update and check out the Economic Calendar.

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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What’s News for Mortgage Rates This Week: January 3rd

January 3, 2011 by · Leave a Comment 

What's News for Mortgage Rates This Week January 3rd by James BarathLast week was a great example of the volatility that has been the norm in 2010 for the Bond market and home loan rates. But in the end, mortgage bonds and home loan rates were able to finish the week strong. So what’s next?

As nearly all of the key economic reports due out this week are rated as having the potential for a high impact on the markets, the New Year will kick off with a bang!

  • We started off right away this morning with the ISM Index. This is the king of all manufacturing indices and is considered the single best snapshot of the factory sector. For the 17th straight month in December, US manufacturing grew and a separate report showed construction spending hit a five-month high. This bodes well for the overall US economy.
  • Tuesday brings us the first release of FOMC Minutes of the year. Although the Fed has already released its policy statement, the markets will be examining the minutes closely for indications of the Fed’s thinking regarding important topics like inflation, rates, and the overall economy.
  • We’ll also see some important employment news this week. First up is the ADP National Employment Report on Wednesday, which measures non-farm private employment. The report is expected to show fewer jobs created in December than the previous reading of 93,000 jobs created in November.
  • The ADP Report will be followed the next day with another round of Initial Jobless Claims on Thursday. In last week’s report, Initial Jobless Claims was reported at the lowest level since July 2008. That was good news for the labor market, but we still need to see if this report was skewed by the holidays or if it was the start of a trend lower in new unemployment claims.
  • The big news of the week will be the release of the all-important Jobs Report this Friday. The Average Work Week and Unemployment Rate are expected to hold steady, while Hourly Earnings and Non-Farm Payrolls are expected to rise.

Volatility in the mortgage bond market and home loan rates will continue into 2011. Despite overall negative trend, home loan rates are still near historic lows. This may not be the case in the weeks and months ahead.

If you’ve been thinking about buying a home or refinancing your existing home, contact me today to discuss your goals and how you can take advantage of the volatility in the Mortgage Bond market.

This is What’s News for Mortgage Rates This Week: January 3rd.

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

Want to see what other economic reports might impact home buyers and home refinance options in the coming week? Visit the Mortgage Market Update and check out the Economic Calendar.

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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What’s News for Mortgage Rates This Week: December 27th

December 27, 2010 by · Leave a Comment 

Empty Shopping Mall at Tysons Corner by Bill O'Leary | WashingtonPost.comThe day after Christmas is traditionally one of the busiest shopping days of the year only second to Black Friday. Since the holiday fell on a weekend and an extended weekend for many, there was much anticipation of ending the year with a retail bang on the heals of growing Consumer Confidence.

Now that the weekend has past and a blizzard has crippled the East Coast, the holiday cheer is beginning to fade. Along with the many families who were stormed in and/or opted to take this week off to enjoy the holiday season, Wall Street bankers and investors have also done the same.

Needless to say there are still a few economic reports scheduled for release this week. Initial and Continuing Jobless Claims Reports will be reported on Thursday as usual in addition to the high impact Chicago PMI (aka. the Business Barometer).

Still looking for a holiday gift that will give back all year round? If you’ve been thinking about buying a home or refinancing your existing home, the good news is that home loan rates are still attractive right now.

This is What’s News for Mortgage Rates This Week: December 27th.

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

Want to see what other economic reports might impact home buyers and home refinance options in the coming week? Visit the Mortgage Market Update and check out the Economic Calendar.

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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What’s News for Mortgage Rates This Week: December 20th

December 20, 2010 by · Leave a Comment 

Merry Meals Proud Community Sponsors | Benchmark Mortgage and James BarathIt will be a holiday shortened week, with the Bond Market closing at 1:00pm CDT Thursday and both the Stock and Bond Markets closed Friday in honor of the Christmas holiday. Before you check out for the holiday festivities, make sure to tune in to what news could impact mortgage rates this week.

Wednesday brings a read on the economy with the Gross Domestic Product Report, which is the broadest measure of economic activity.

A double dose of housing news will start with Wednesday’s Existing Home Sales Report and followed up with Thursday’s New Home Sales Report.

Big inflation news comes on Thursday with the Personal Consumption Expenditure (PCE) Index, which is the Fed’s favorite gauge of inflation, plus there’s also the Personal Income and Personal Spending Reports, which give us some information on the consumer perspective of the economy.

Thursday’s Initial and Continuing Jobless Claims Reports will also tell us if the good trend continues – last week’s Initial Claims was the second lowest number seen during 2010, and also the third decline in four weeks.

It’s important to understand that mortgage rates do not simply rise in a straight line. In fact, mortgage bonds and home loan rates did have a late-week rally last week. That trend of mortgage rates worsening with improving dips here and there like we saw last week may be what’s in store for us in the weeks ahead.

Be alert to the fact that the ongoing and potential addition of futher stimulus from the Federal Reserve, combined with the stimulus from the tax cust, will make it tough for mortgage bonds and home loan rates to return to the levels seen earlier this year.

With that being said, the good news is that home loan rates are still extremely attractive right now. If you have been thinking about buying a home or refinancing your existing home, contact me to get started today.

This is What’s News for Mortgage Rates This Week: December 20th.

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

Want to see what other economic reports might impact home buyers and home refinance options in the coming week? Visit the Mortgage Market Update and check out the Economic Calendar.

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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What’s News for Mortgage Rates This Week: December 13th

December 13, 2010 by · 1 Comment 

Economic Calendar for Week of December 13-17 by James BarathUnlike last week, get ready for a busy week of economic reports and news that could impact home loan rates every day this week!

We’ll start off Tuesday morning with the Retail Sales report for November, as well as the Fed’s final FOMC Meeting and Policy Statement of the year coming on Wednesday.

We’ll also see new inflation reports starting on Tuesday with the Producer Price Index (PPI), which measures inflation at the wholesale level. The very next day, we’ll see the Consumer Price Index (CPI) with a look at inflation on the consumer level. With all of the recent talk over inflation concerns in the future, it will be important to see what these reports reveal – since inflation is the archenemy of Bonds and home loan rates.

We’ll also get a dose of manufacturing news in the Empire State Index, which looks at New York State’s manufacturing sector, and is a good gauge of manufacturing overall. On Thursday, we’ll also see the Philadelphia Fed Index, which is another important manufacturing report. Those two indices have the potential to impact the market, since they indicate the health of the manufacturing sector in the US.

Thursday brings the Initial and Continuing Jobless Claims Report. Last week, Initial Jobless Claims came in at 421,000, which was below expectations. That was encouraging news, but we still need to see consistent readings below 400,000 before real confidence in the labor market can take hold.

Finally, we’ll see more housing news this week, when reports on Housing Starts and Building Permits in November are released on Thursday.

If you are ready to buy a home or refinance a home, do not get caught in a state of emergency like the winter storm warning that blanketed Northwest Indiana. Call today and lock-in your home loan rate.

This is What’s News for Mortgage Rates This Week: December 13th.

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

Want to see what other economic reports might impact home buyers and home refinance options in the coming week? Visit the Mortgage Market Update and check out the Economic Calendar.

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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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