Last Week Mortgage Rates Held Near 2010 Lows. What Will Happen This Week?

Hey Folks!

Mortgage rates ended last week near the lows of 2010 as mortgage backed securities prices rallied higher in the first half of the day. This allowed most lenders to improved rates. These gains didn't make it through the day, MBS prices fell late in the afternoon which forced some lenders to reprice for the worse. After all was said and done rates were just about the same as when the week started.

This week begins with Personal Income and Spending Data. Next is consumer spending and finally is the Personal Consumption Expenditure. At the end of Monday mortgage rates were higher.

Here is this weeks reports that will affect mortgage rates:

Wednesday

• MBA Applications Index(low impact)
• ADP Employment Report, not as important as Friday’s Employment Situation report but gaining momentum as an early  predictor of non-farm payrolls.   ADP forecasts a loss of 70,000 private payroll jobs.  (medium to high impact)
• ISM Non-Manufacturing Index(low to medium impact)
• Beige Book. This data outlines economic conditions around the United States and is used as a point of reference during FOMC meetings where our nation’s monetary policy is set. (medium impact)

Thursday

• Weekly Jobless Claims (medium impact)
• Productivity and Costs (medium impact)
• Factory Orders(medium impact)
• Pending Home Sales Index, many economists believe that until housing picks up our economic recovery will be slow which makes tracking home sales data of much more importance today than in prior years.(medium to high impact)
• Treasury Announcement of size of next week’s auction of 3 year notes, 10 year notes and 30 year bonds.  The additional supply of debt on the market will pressure treasury and MBS prices lower which increases yields and rates. (medium impact

Friday

• Employment Situation, this is the single most important report we get on a monthly basis. Early predictions call for a loss of 50,000 jobs and the unemployment rate moving higher to 9.8%. (HIGH IMPACT)

Reports from fellow mortgage professionals indicate rate sheets to be slightly worse than the repriced rate sheets of Friday afternoon.  The par 30 year conventional rate mortgage continues to hold in the 4.75% to 5.00% range for well qualified consumers.  To secure a par interest rate you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee.  You may elect to pay less in closing costs, but you will have to accept a higher interest rate.

 

American Bank Mortgage Group is a direct lender servicing all 50-states. I’m centrally located in Indianapolis, IN and can help answer your questions and best of all we close mortgages in 10-days or less.

At your service,
Tony Grego
Senior Mortgage Banker
American Bank - Indianapolis, IN Branch

www.getmyratequote.com
www.tonygrego.com to learn more about me

317-348-0280 direct line
317-536-3754 fax

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