Last week was one of ups and downs for mortgage interest rates. The Treasury auction didn’t fare well this past week. And as the Fed winds towards the finish line of buying mortgage backed-securities (this Wednesday, March 31, 2010), we may be seeing higher interest rates if other investors don’t step in.
Looking down the road on these mortgage backed-securities that the Fed has beenbuying and now holding, we may see them start selling back into the marketplace. Remember, they have purchased $1.25 trillion of these making their balance sheet on the heavy side. This could result in higher interest rates.
This coming week is filled with economic reports. The biggies are Monday: Personal Consumption Expenditures and Core Personal Consumption Expenditures, Wednesday: Chicago PMI and, the all important, ADP National Employment Report, and Friday: ISM Index, Non-Farm Payrolls, Unemployment Rate, Average Work Week, and Hourly Earnings.
Last week’s Initial Jobless Claims showed the lowest numbers in months. But we can’t forget the ones who have totally dropped out of working or those who have had to take part time jobs to make ends meet. We can only hope that the Unemployment Rate is coming down as hopefully more companies start to hire.
You can read about all of this as well as more about the $8000.00 First Time HomeBuyers Tax Credit that will end April 30, 2010 in this week’s MMG Weekly Review.
You can also check out the Daily Rate Lock Advisory each day. This report normally comes out around 10am.
And as always, I 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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