Mortgage Rates in Evergreen Colorado - Market Update 4-12-2010
After a scary few days after the end of the Fed's MBS purchase program, Mortgage Rates rallied late last week, to end the week vastly improved over where we closed opened on Monday.
Much of the improvement in Mortgage Rates came as a result of commentary from Federal Reserve Chairman Ben Bernanke on Wednesday as he stated inflation remains subdued and he has his concerns about the labor market. Bottom line is that without a marked improvement in unemployment, the 
economy will not turn around any time soon. Bad economy = low Mortgage Rates.
As you can see from the chart on the left, unemployment remains high, but off the highs of October 2009 when it peaked at the highest level since 1983 at 10.1%. However, 9.7% is not too far off that mark, and it must be taken into account that unemployment figures do not include those who no longer qualify for benefits or have accepted part time work but would prefer full time work. Also, the government has been hiring to help with the Census, which has led to some increase in jobs that will likely be temporary.
Also jostling Mortgage Rates last week were good bond auction results as investors flocked to the safe-haven of bonds in light of bad news from Europe on the Greece crisis which may be carrying over into other countries. There is wide-spread fear that the crisis could lead to the fall of the EU which would have worldwide consequences.
So far today, Mortgage Rates are improving, but traders are watching with a leery eye for CPI inflation numbers which will be released on Wednesday. Inflation is bad for Mortgage Rates, and it will be interesting what Wednesday's CPI numbers convey to the markets one week after Bernanke's testimony. Also, the weekly jobless claims report on Thursday will be closely watched.
It remains a great time to lock your rate as we remain close to the lows of the past year. However, it seems Mortgage Rates have nowhere to go but up and there was an interesting article to that effect in the New York Times today: Interest Rates Have Nowhere to Go But Up
With the First Time Home Buyer Tax Credit deadline looming, and home prices greatly devalued in most markets, it is a great time to buy a home. We can help you get Pre-approved within 24 hours!
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