RJ Baxter First Mortgage Corp Evergreen Colorado Mortgage Market Update
My weekly Mortgage Market Update has been published here: RJ Baxter First Mortgage Corp
Here are the Mortgage Market Update highlights:
GDP: Best reading in 6 years at 5.9% growth in 4Q 2009. However, when looking below the surface, the growth came mainly from restocking of inventories, not from consumer spending, which was down sharply. This is not a good sign for the economy.
Home Sales: Down again last month and below expectations after peak in Nov 2009. Weather has surely played a factor, but this does not exactly signal a rebound in housing right now.
This Week: Plenty of news in store for the week, and we start out with a bang today with the PCE inflation reading. This will likely have an effect on rates. Remember, high inflation has a negative effect on rates, eroding the value of a long term investment such as bonds that back fixed mortgages. Therefore, when high inflation readings come in, rates go up. The markets have been watching closely for signs inflation is coming as this is a big fear with all of the government stimulus money being spent.
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