Mortgage News Blog

     This week will be full of what the Fed will do next week during their schedule meeting June 22-23.  The main debate as always will be whether they will raise their Fed Fund Rate which is the short term interest rate that banks change each other for use of overnight funds. If they raise the rate too fast, it could cause a double dip recession, and not fast enough, inflation will raise its ugly head.

     Besides this debate, the first part of the week will be fairly quiet. Wednesday and Thursday will be the newsy days. Wednesday gives us Producer Price Index, Housing Starts and Building Permits while Thursday will be Consumer Price Index and Initial Jobless Claim Report.

     Most troubling is the Initial Jobless Claim Report as those claims are remaining high. Last week, the Initial Jobless Claim Report reported that an additional 5.13 million people claimed Emergency Unemployment Compensation-benefits that last longer than the normal 20 weeks. These last up to 99 weeks in total.

     Last week, we saw global investors finding safe haven in US Bonds. But as the Euro stabilizes, investors and traders can start reversing their trades which will cause mortgage interest rates to rise again. Balancing this May’s Job Report and Retail Sales Report showed a decline which only indicates how fragile our own economy still is.

     In all, we are still walking a tight rope as we climb out of this slow recovery. A false step, mounting debt, stubborn high umemployment  and tightening credit can all have an effect as to which way this economy will go.

     You can read about all of this and more in this week’s MMG Weekly Review as well as a great article on “Six Travel Scams to Avoid.”

      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

206-331-2749