This Is The Week Ahead for December 27th

By
Mortgage and Lending with Canopy Mortgage, LLC NMLS 124492

Tis the season of giving and last week proved just that as mortgage bond traders gave back the remainder of their gains going back as far as August. This meant that home loan shoppers felt their Christmas bliss get snatched from under their feet as the Grinch had made his presence known the entire week.

Just like last week, Monday will start with mortgage bonds taking a back seat to the holiday fervor of the stock market as there are no scheduled economic reports. There is sure to be much talk about the terrorist activity on holiday travel and it's impact on the economy.

On Tuesday, the Conference Board will post its December Consumer Confidence Indexwhich should provide a window into consumers willingness to spend. It is anticipated that the index will rebound up to 53.0.

The December Chicago Purchasing Managers Index (PMI) will be released on Wednesday and is expected to slow a slight retraction; nonetheless, the index is still expected to show the economy in growth. Any significant contraction could be great for home loan rates.

Treasury auctions on Monday (2-year notes), Tuesday (5-year notes) and Wednesday (7-year notes) totaling $188 Billion will be the curve ball of this week as the market has been flooded with US debt. It will of great importance to keep an eye out for foreign participation in support of the US dollar and the economy.

Another holiday shortened week will add to greater volatility as there will be less traders in the market to off set any major moves. Trends will be exacerbated and for the weary, locking your home loan rate is highly recommended.

Home loan shoppers and retirement funds will continue their battle for investment dollars from abroad and here in the US. As-is the par for the course, good economic news will favor the stock market and take money away from mortgage bonds which will result in higher mortgage rates. Conversely, bad economic news will drive investors into the safety of bonds which will help home buyers with lower mortgage rates.

Want to see what other economic reports might impact home buyers in the coming week? Stop by and check out the Mortgage Market Update Provided to You Exclusively by The Barath Group.

This Is The Week Ahead for December 27th.

 

Five Recent Blog Posts of Interest:

  1. Weekly Blog Update for the Week Ending December 26th
  2. If Tight Lending Threaten U.S. Recovery, What Can We Do
  3. What Will You Do This Holiday To Give Back To Your Community?
  4. Hurry Realtors® - Get Your Flip Camcorder & Free Accessory Today
  5. This Is The Week Ahead for December 20th

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Sara Woolford & Steve Golson, ALHS
iTexas Realty Co. - San Antonio, TX

Hi James-

Thanks for the excellent update for the week coming.  Despite the potential negatives, I think that an increase in the consumer confidence number would be welcome news as is seems to be reported with a disproportionate strength to the public.

--Sara in San Antonio

Dec 27, 2009 04:04 PM #1
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James K Barath, CMPS
Canopy Mortgage, LLC - Crown Point, IN
FICO Pro, Certified Military Housing Specialist

Sara - Good news is always welcome especially if it translates into jobs and economic growth. Happy Holidays!

Dec 28, 2009 01:37 AM #2
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