What’s Ahead For Mortgage Rates This Week : August 1, 2011

Mortgage and Lending with DNJ Gateway Mortgage
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Jobs report will move mortgage ratesMortgage markets improved last week as the U.S. debt ceiling debate continued on Capitol Hill. Bonds traded in a range Monday through Thursday before breaking higher Friday morning.

30-year fixed conforming mortgage rates improved in Georgia last week, falling to levels just north the product’s all-time low set in November 2010.

5-year ARMs improved last week, too. The benchmark adjustable-rate mortgage’s average national rate is now tied with its all-time low, also set last November.

This week, the direction of mortgage rates depends on two events:

  1. The resolution of the U.S. debt ceiling debate, due Tuesday
  2. The July Non-Farm Payrolls report, due Friday

Mortgage rates will be volatile as markets grapple with the expectations for the above events, and their eventual outcomes. 

Sunday evening, for example, congressional leaders reached an agreement to raise the U.S. debt ceiling by $2.1 trillion, and to introduce $2.5 trillion in budget cuts within 10 years. The deal must pass Congress, however, and until it does, speculation will push mortgage rates around.

Friday’s jobs report should swing mortgage rates, too. 

After starting the year strong, the 2011 jobs market has faded. Net new jobs have dropped 5 months in the row and the national Unemployment Rate is climbing. Weak job growth portends weak consumer spending and a weak economy — typically two outcomes that are good for mortgage rates. 

Because of doubt cast by the debt ceiling debate, though, it’s too soon to know how Wall Street will react to the jobs data — strong or weak.

For now, mortgage rates remain low. They may fall further, or they may not. The “safe bet” is to lock.

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Interested in me?  I am a mortgage loan officer at DNJ Mortgage with headquarters in Raleigh, NC.  Not only have myself and my team helped thousands of homeowners finance homes in our local area including Apex, Cary , Wake Forest , Chapel Hill, Durham, and many more areas in North Carolina; but we originate loans in all states from Virginia to Florida.  We have command over all loan programs from FHA, USDA, VA, to NC Housing, down payment assistance, conventional loans, etc...  We also specialize in low closing cost loans and no closing cost loans. 

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Austin Herbert, CRMS
Senior Loan Officer
DNJ Gateway Mortgage
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Comments (1)

Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

What will it do to rates if Standard and Poors drops the US credit rating to AA?

Aug 01, 2011 03:23 PM