Last week was fairly stable as mortgage rates leveled off a bit after weeks of slowly moving off of all time record lows. This week will see the market watching the data data that is being released for the Consumer Confidence Index, Case Shiller Index, New Home Sales and Pending Home Sales Index. Positive news from any of these events cold lead to mortgage rates going higher.
Mortgage Rates: Reality Check
The US saw mortgage rates hit all time historical lows last month. Rates were pressured down by a unique combination of concern about the health of the US economy and concern about the health of banking in Europe with Greece being the epicenter of worry. In the past weeks the United States has released data that was positive in relation to spending and jobs, which means that investor concern about the health of the United States economy may be lessening. Additionally, there is the possibility of a successful resolution for some of the issues facing Europe.
If the two dominant concerns weighing on the market become less of a concern to investors, money will flow from bonds (where investors put money in time of volatility or concern) into equities, with the end result that mortgage rates will increase. We’re not talking about increasing gently as they have in the past five or so weeks, we’re talking about huge increases that will make the rates of today seem like a thing of yesteryear. In other words, we may never see mortgage rates where they are currently for a very, very long time.
Economic Calendar for Week of October 24, 2011
- Monday – Richard Fisher & William Dudley of the Fed speak
- Tuesday – Consumer Confidence, S&P Case-Schiller
- Wednesday – Durable Goods Orders, New Home Sales
- Thursday – GDP, Jobless Claims, Pending Home Sales Index
- Friday – Personal Income & Outlays, Consumer Sentiment
What Mortgage Program Is Right For You?
Since we are near all time record lows for mortgage rates and there is a distinct possibility of never being at the current lows ever again as there are signs of improvement in the US economy, now is the time to get your ducks in a row regarding your mortgage. If you are not sure of the best program for your needs or concerned about getting your rate locked before rates move up, we can help. Call us to find out how.