Below is the chart of the most important factors that determine interest rates. This is the most recent one.
LOOKING AHEAD
Economic | Release | Consensus | Analysis |
Durable Goods Orders | Tuesday, Feb. 27, | Down 1.5% | Important. An indication of the demand for "big ticket" items. A larger than expected decrease may lead to lower rates. |
Consumer Confidence | Tuesday, Feb. 27, | 110 | Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates. |
Existing Home Sales | Tuesday, Feb. 27, | Up 0.3% | Low importance. An indication of mortgage credit demand. A significant decrease may lead to lower rates. |
Q4 Preliminary GDP | Wednesday, Feb. 28, | Up 2.3% | Very important. The aggregate measure of US economic production. A decrease may lead to lower rates. |
New Home Sales | Wednesday, Feb. 28, | Down 1.7% | Important. An indication of economic strength and credit demand. A larger decrease may lead to lower rates. |
Personal Income and Outlays | Thursday, March 1, | Income up 0.3%, | Important. A measure of consumers' ability to spend. Weakness may lead to lower mortgage rates. |
ISM Index | Thursday, March 1, | 50.0 | Important. A measure of manufacturer sentiment. A large decline may lead to lower mortgage rates. |
U of Michigan Consumer Sentiment | Friday, March 2, | None | Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates. |
PRELIMINARY GDP
The Gross Domestic Product (GDP) is one the most important reports during any given quarter. GDP is a measure of US economic output and spending. The report is significant in that it provides investors, analysts, traders, and economists with a comprehensive report of the direction of the economy. In addition, it also influences the decisions of Federal Reserve policy makers, Congressional budget employees, and corporate financial planners.
GDP is the sum total of goods and services produced by the United States. The initial report is often based on incomplete data. Therefore, additional revisions are released over the following two months. There are often substantial differences between the initial release and the revisions. The mortgage-backed security market generally responds favorably to weaker GDP growth.
The preliminary fourth quarter gross domestic product data this week has the potential to move mortgage interest rates. A cautious approach is necessary to protect against market volatility.
Home123 Corporation: AZ: Mortgage Banker Licensee BK0904443. CA: Licensed by the Department of Corporations under the California Residential Mortgage Lending Act. GA: Georgia Residential Mortgage Lender License #15212. IL: Illinois Residential Mortgage Licensee. KS: Kansas Supervised Loan License #2000-4019. MA: Mortgage Lender and Mortgage Broker License #MC1485. MN: This advertisement is not an offer to enter into an interest rate lock agreement under Minnesota Law. MS: Mississippi Registered Mortgage Company. NV: 6548 S. McCarran Blvd., Unit B, Reno, NV 89509 (775)824-2940. NH: Licensed by the New Hampshire Banking Department. NJ: Licensed Mortgage Banker, New Jersey Department of Banking and Insurance, 116 Village Blvd., Suite 307, Princeton, NJ 09540 (609) 721-1166. NY: Licensed Mortgage Banker, NYS Banking Department. OH: First Mortgages: Mortgage Broker License #MB6134, 3351 Michelson Drive, Suite 400, Irvine, CA 92612. PA: First Mortgages: Licensed by the Pennsylvania Department of Banking; Second Mortgages: Licensed Pursuant to the Secondary Mortgage Loan Act. RI: Rhode Island Licensed Lender. WA: Licensed Consumer Loan Company. Headquartered at 3351 Michelson Drive, Suite 400, Irvine, CA 92612.
All loans subject to underwriting approval, including credit and property approval. Loan products available may vary by state. Not all borrowers will qualify. Not a commitment to lend. Terms and programs subject to change without notice. For some loan products, minimum loan amount is $50,000. Home equity loan products may involve appraisal, title search, and other fees, but costs nothing to obtain details or apply. Equal opportunity lender. Copyright, 2006, Home 123 Corporation.
Comments(0)