A recent survey shows a slow recovery, meaning short term interest rates will remain low.

.

The  AP Economy Survey projects weaker growth in the coming months as key components of the economy – employment and consumer spending – continue to struggle. (July 29)

Watch the video.

.

While this probably means rats for adjustable rate mortgages (ARMs) will remain low for a while the impact in fixed rate mortgages is unknown.  Some foreign economies appear to be rebounding faster the the US economy, which may mean rates on 15, 20 and 30 year fixed home loans may inch up.  Advise here is to go ahead and take advantage of the current low mortgage rates.

.

www.paulcantor.info

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Mortgage Rate Recap

Jul 19, 2010

Last week; a good one for mortgage rates.. Mortgage rates fell about 8 basis points. TheDJIA -101, gold -$17.00, crude oil -$0.32. Not so good for the economic outlook. The NY Empire State and the Philadelphia Fed business index, both weaker than forecasts; and the U. of Michigan consumer sentiment index plunged to 66.5 frm 76.0 well below estimates. Consumers still are not confident about the economic outlook

.

This week may be interesting for the bond market and mortgage rates. Only three major economic reports are scheduled.  Two days of semi-annual congressional testimony by Fed Chairman Bernanke. The first day of testimony has the potential to influence changes to mortgage rates more than many of the monthly or quarterly pieces of economic data that we see regularly.

.

The first economic report of the week comes Tuesday morning with the release of June’s Housing Starts. This data gives us an indication of housing sector strength, but is not considered to be of high importance. Analysts are currently expecting to see a decline in new home construction starts. However, this data most likely will not have much of an impact on mortgage rates Tuesday unless it varies greatly from forecasts.

.

Fed Chairman Bernanke will speak before the Senate Banking Committee Wednesday and the House Financial Services Committee Thursday mornings at 10:00am ET. His testimony will be broadcast and watched very closely. Analysts and traders will be looking for the status of the economy and his expectations of future growth, particularly inflation concerns that will lead to changes in key short-term interest rates. This should create a great deal of volatility in the markets during the prepared testimony and the question and answer session that follows. If he indicates that inflation may become a point of concern, we will likely see the bond market fall and mortgage rates rise.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Mortgage rates drop to new low of 4.57 percent | Richmond Times-Dispatch.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter