Mortgage rates improved yet again last week, yet again hitting and ending near all time historic lows. Last week was marked the FOMC meeting and their announcement that they would be continuing their projection of “exceptionally low rates” beyond 2013 into 2014. The market reacted and mortgage rates went lower.
Events Affecting Mortgage Rates This Week
This week will see European Union leaders meet. Any developments coming out these meetings have the potential to move mortgage rates. Specifically, bad news may result rates going lower and good new will likely push rates higher. This occurs because bad news means investors move their money away from stocks (stock markets go down) and put it into bonds, which typically means mortgage rates decrease.
The other big event is non-farm payrolls, otherwise known as the Jobs Report that is being released on Friday. Since jobs are a key component of economic health for the country, these numbers can move mortgage rates on a dime.
Negative news out of Europe and disappointing news with the Jobs Report could sent mortgage rates to new all time historical lows. Positive news from these events could signal a change in the current trend and start the beginning of mortgage rates moving off of the current lows.
Economic Calendar for Week of January 30, 2012
- Monday – Personal Income & Outlays,
- Tuesday – S&P Case-Schiller, Chicago PMI, Consumer Confidence
- Wednesday – ADP Employment Report, ISM Mfg Index, Construction Spending
- Thursday – Jobless Claims, Productivity & Costs,
- Friday – Employment Situation: Non-Farm Payrolls, Factory Orders
Should I lock My Mortgage Rate Now or Wait?
Right now may very well be one of the best times in history to lock in a historically low mortgage rates. But wait, what if you’re not sure what size loan you qualify for or what program is right for you? We can help educated you, free of charge, about what loan programs are available and which one will help fit your needs the best. We can also put together a common sense purchase or refinance strategy that fits your unique needs. If you have questions this help is only a phone call away!