This week will be a light week for economic reports. But what can and may move the bond market will be Fed. Chairman Bernanke’s testimony on Wednesday to the Senate Banking Committee and on Thursday to the House Financial Committee. Each word in his opening statement on Wednesday will be closely analyzed to see where he thinks the economy is headed. And then each of his answers will also be closely analyzed.
The economic reports that will be released this week will be on Tuesday, the Housing Starts and Building Permits. This will give us an update on what is being built and going to be built. On Thursday, we will get the Initial Jobless Claims. We will welcome any positive changes in this report.
Last week, Congress passed the sweeping Financial Reform Bill. There has been much talk in our industry about this bill and the changes it will bring. The bill itself is over 2,000 pages but unfortunately doesn’t address the major causes of the financial meltdown. As financial corporations try to digest this over the next weeks and months, they will continue to hold on to their cash reserves. And as long as they hold on to the their cash and don’t invest it (lend it out), we will continue to have a very bumpy recovery.
You can read about all of this in this week’s MMG Weekly as well as an article from Kiplinger on “Tweets Can Help Your Business”.
As always, I’ll be following these and more so that I am up on the news that affects mortgage interest rates.
You can also check out the Daily Rate Lock Advisory each day. This report normally comes out around 10am.
I also will report daily on twitter @mmtgsolutions on the mortgage interest rates and what to expect for the day. If one of these reports moves the market in a significant manner, I’ll write about it here.
Please remember, I welcome your comments to this and my other posts.
To an inspiring week,
Betsy Moore
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