What's Ahead For Mortgage Rates This Week: March 30th, 2009

Mortgage and Lending with loanDepot loanDepot NMLS #174457

The stock markets made strong gains last week but the mortgage markets barely moved in the wake of the Treasury's "toxic asset" plan. Existing Home Sales rose unexpectedly in Feb 2009

After carving out wide trading ranges on most days, mortgage pricing ended the week slightly worse overall.

From an economic standpoint, though, last week was an interesting one.

In addition, consumer confidence rose unexpectedly, too.

To rate shoppers, these "unexpected" developments are warnings worth heeding because mortgages trade on expectations of the future.  And "the future", you'll remember was widely expected to be an economic abyss.

This is one of the many reasons why mortgage rates are so low right now -- during uncertain times, investors flock to safe investments.  But when those expectations change, mortgage rates usually do, too. 

And quickly.

Our current recession has been thus far called "housing-led" and was predicted to last several years.  Last week's data, however, provides at least some evidence that the recession may be ending; that the economy may find its way forward sooner rather than later. 

Indeed, even members of the Federal Reserve now call for a turnaround starting in as few as 6 months.

For now, market reaction to the unexpected data has been tepid.  Therefore, watch for developments over the coming weeks and -- perhaps more importantly -- keep an eye on the investor mindset.  If bond markets start to sell-off en masse, don't be surprised if mortgage rates race higher by quarter-point leaps at a time.

Meanwhile, this week, the biggest data release is Friday's jobs report.  It's expected to show unemployment reaching to 8.5% with another 656,000 Americans losing their jobs in March.  As before, if the data isn't as bad as expected, watch for stocks to rise and mortgage rates to go with them.

Posted by

David Kosmecki

Area Sales Manager NMLS 265365 | 76988

Direct: (763) 519-1100 | Toll Free: (800) 536-0233


Check me out at: Fast Closing Now.





This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Mortgage / Finance
Minnesota Hennepin County Maple Grove
The Economics of Real Estate
Minnesota's Nice :)
Consumer Mortgage Tips
Responsible Mortgage Lenders
Minnesota Real Estate
maple grove
dave kosmecki
whats ahead for mortgage rates

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


David Kosmecki

Ask me a question
Spam prevention

Additional Information