Monday, October 12, 2009

Roxy's Weekly Mortgage Update

Mortgage rates spent the first part of last week sliding lower again, but rates began creeping upward as the week progressed. With limited economic data to drive bond markets, much of the movement came
from money flowing into stock markets, which rallied as the week progressed.
Mortgage rates will likely start the week with some upward pressure hanging on from last week, but with a week full of economic data and some potential news from Washington, we could see rates go
either way next week. Both Retail Sales and Industrial Production data are due next week. With
consumers still struggling, a near unchanged sales reading might help propel rates higher, as would a
higher-than-expected IP reading. However, we’ve got the Consumer Price Index due with
expectations of continuing low inflationary pressures. If the CPI remains unchanged, and Congress
begins to move in earnest to extend or expand tax credits for homebuyers, we’re likely to see
mortgage rates return to the slow march downward, similar to the trend of last few months.
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