Last week saw mortgage rates waiver, with most movement being sideways, which was a bit of a surprise. Many market watchers expected positive positive employment data and a resolution to the Greek Debt debacle to cause mortgage rates to rise significantly, which did not occur.
Last week saw the Labor Department release the monthly Employment data for February showing an 8.3% unemployment rate that was unchanged from January. They also showed that 227,000 new jobs were added.
On Thursday of last week, the Greek debt deal was completed with somewhere around 85% of investors agreeing to a swap. This was good news for the markets, but still not a 100% guarantee of a final resolution. The markets will continue to watch the situation closely in the coming days and weeks.
Mortgage Rates and the Week Ahead
On Tuesday, the Commerce Department will be releasing February’s Retail Sales data, which consumer spending. This data is important to the market because consumer spending makes up approximately two-thirds of the U.S. economy.
Tuesday will also see the a one day meeting by the Federal Open Market Committee (FOMC) meeting take place. The market will be closely watching this meeting and any statements coming out of the meeting or made by Ben Bernanke have significant potential to move mortgage rates.
The reality is that the stage is and has been set for mortgage rates to increase for sometime. Since we’re seeing more and more evidence of a bottom in housing, increased health in the US Economy and a resolution of sorts for the Greed Debt Debacle, this will likely be sooner rather than later.
Economic Calendar for Week of March 12, 2012
- Monday – Treasury Budget
- Tuesday – Retail Sales, FOMC Meeting & Announcement, Business Inventories
- Wednesday – Import and Export Prices, Ben Bernanke Speaks
- Thursday – Jobless Claims, Producer Price Index, Philadelphia Fed Survey
- Friday – Consumer Price Index, Consumer Sentiment