Mortgage rates experienced some downward pressure last week even with the PPI and CPI revealing that inflation has not completely left the marketplace. Stock markets had a rough week with more sour economic news, including the President’s announcement last week regarding housing. Many analysts were disappointed that the details of the plan will not be announced until March.
This week is another busy week for the market, with both Consumer Confidence and GDP numbers due, and more news that could move mortgage rates. If Confidence numbers continue to stay at a low level, we could see rates move down further with fears that consumers will finally snap their pocketbooks closed.
The GDP numbers for the final quarter of last year are expected to be revised
down below 5.0%. If this happens, we could see rates experiencing even more downward pressure. Fed Chair Bernanke also testifies before Congress this week. If he provides more specifics about plans the Fed has for housing, we are likely to see rates moving downward after his testimony.