Here's your Weekly
Mortgage Market Update for February 8, 2010.
Last week the Jobs Report came out with both good and bad news, depending on how you look at it.
The headline was that the Labor Department reported 20K jobs lost in January (worse than expectations). But the unemployment rate came in lower from last month's.
There're for sure some signs of hope for the job market and I guess we can all agree that a huge improvement on the labor market needs to happen before we can say that the economy is "out of the woods". It will happen...
Pending Home Sales for December were up significantly from November's reading. Home buyers are taking advantage of the great low rates and tax incentives. The Federal Reserve kept up with their Mortgage Backed Securities purchases, which has helped home loan rates to stay low. This purchase program is supposed to end on March 31st.
Home loan rates improved a little during this very volatile week. Don't forget...when the Fed is done with buying Mortgage Backed Securities, mortgage rates could move higher.
Looking Foward
This week will be quiet as far as economic reports go. The Initial Jobless Claims Report comes out on Thursday. Last week's numbers came a little worse than expected and the Continuing Claims numbers increased to 4.6 million. That does not even count for the people whose unemployment benefits have expired.
The Retail Sales Report for January also comes out on Thursday. It is an indicator of consumer spending patterns and it will be interesting to see in each direction is moving.
The Treasury will be auctioning more notes so we may see some market moves based on how the action goes, especially since there's not a lot of ecomonic reports coming out.
As you may or may not know...weak economic news usually cause dollars to move out of Stocks into Bonds, helping home loan rates improve. Strong economic news has the opposite result.
Have an awesome week!
Originally posted at MySacramentoMortgage.com
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