Last week saw rates rally until Friday when the markets had the chance to digest more inflation data. Mortgage rates begin this week higher as the stock market rallies on positive oil news. While the market is not expecting an imminent rate hike from the FED, traders are still concerned about inflation data and rates do remain volatile. We recommend locking your rate to protect yourself from the market movements.
Bankrate.com No data has changed to indicate long-term momentum shift. That momentum is for lower bond prices, thus higher rates. Inflation worries persist and with the Fed both unwilling and unable to do anything about it, this spells higher mortgage rates.
HSH Market Trends Home sales remain mired in the doldrums, but the pattern of continual and substantial declines is fading. Over the next couple of months, the double-digit declines in the year-ago comparisons will be replaced with smaller numbers and perhaps even a few favorable reviews.
The big number of the week was the final second-quarter figure for Gross Domestic Product, which rose at a 3.3% clip, revised upward from the initial estimate of 1.9% growth. The magnitude of the revision was a surprise, and no doubt was goosed by the influence of the one-time economic stimulus package, but that's now behind us. It's hard to argue that we're in a recession with the latest measure of growth in solid position, but it is fair to expect that the 3.3% clip won't be repeated in the third quarter. We'll probably
Mortgage Commentary Tuesday’s bond market has opened in negative territory following early stock gains. The stock markets are starting this shortened week with strong gains as the Dow is up 183 points and the Nasdaq has gained 27 points. The bond market is currently down 6/32, which will likely push this morning’s mortgage rates higher by approximately .250 of a discount point over Friday’s morning rates.
Overall, I expect to see the most movement in rates Friday due to the importance of the Employment report. I am holding the short-term lock recommendations for the time being, but this does not mean that I think rates will necessarily move higher. It means that I feel the risk versus the potential reward of continuing to float an interest rate is leaning heavily towards the risky side. Accordingly, locking seems to be the prudent position at this time if closing in the immediate future.
The Weekly Market News is provided by Amerisave Mortgage Corporation using various news sources. Accuracy of content is not confirmed independently by Amerisave. Amerisave is not responsible for actions based on information or advice provided.
We apologize, but many features of our web site require that your browser accept first-party cookies.
Please go to your browser's help files to learn how to accept first-party cookies. After you accept first-party cookies, you may continue
Also, our Loan Advisors are standing by to help you – please call us at 866.970.SAVE
