As feared, last week mortgage markets slid last week, and it took interest rates with them.
There is still good news, Indiana Home Buyers, Rates are still historically low.
With, a steady drip of bad economic news and with concerns that the banking system out-muscled Fed Chairman Ben Bernanke’s congressional testimony in which he said the recession would likely end later this year.
So, it is litte wonder that mortgage rates rose 9 times in the last 12 trading days.
This week, I am a little unsure what direction mortgage rates will go, but I am sure it won’t be from a lack of action.
The week started with the release of the Personal Spending report, this is a closely-monitored report that will likely make a broad market impact. Some, Economists expect that there was a spending increase in February, providing some key support for economy.
However, if the Economists are wrong and spending fell. The report will cast doubt on the speed at which the economic recovery will occur. Consumer spending makes up two-thirds of the economy, and no spending equals no recovery. So, Go BUY something will you. I wear an XL.
Then, on Wednesday, the White House is expected to release the details of the Homeowner Affordability and Stability Plan. So, markets are playing a “wait and see” on the impact of the news. If key analysts and traders see the plan as effective, watch for stock markets to improve and bond market to weaken.
This would cause mortgage rates to rise.
Last, but no least, on Friday, we will get the February’s official jobs number, and job loss is expected to be over 600,000 for the month and unemployment may reach 8%.
However, on many levels, if the jobs data does meet expectations, it would be okay with mortgage rates.
At this point, I recommend that you float your mortgage rate, cautiously. Wall Street is nervous and is hyper-sensitive to Beltway(Washington DC) influence. Markets can and will change in an instant and when they do it is usually a change for the worse.
This week, I have a game plan, and it will be easier to take advantage of daily mortgage rate movement.
If you have any questions or concerns please give me a call at (219)872-8000
. or email me, Dave@madmortgagemachine.com
Dave
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