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Before you read below, if your home loan rate is above 5.375 or you would like to get into a 15 year rate at 4% ( APR 4.1) then call us to review the strong possibility of saving you valuable money each month.....
Tuesday’s bond market has opened in positive territory after this morning’s only economic data showed weaker than expected results. The stock markets are helping boost bond prices with the Dow down 90 points and the Nasdaq down 21 points. The bond market is currently up 7/32, which should keep mortgage rates where they are at now ( all time low).
June’s Housing Starts was today’s only relevant data and it does not carry much significance in the markets. To no Surprise ~~It revealed that starts of new housing fell 5% last month to its lowest level since last October. This further supports the theory that the housing market is not stable yet, which can be considered good news for the mortgage market because a weak housing sector makes a broader economic recovery less likely. It will be a long time until we see housing starts pick up ... there is still just way too much inventory on the market and the economy has most people buckling down.
There is no relevant economic data to be posted tomorrow, but it is the first of two days of congressional testimony on the status of the economy and monetary policy by Fed Chairman Bernanke. I was at Bernanke’s last semi-annual testimony in D.C., so it will be extremely interesting to compare the two presentations. He will appear at 10:00 AM ET and he usually starts with a prepared statement before he answers questions directly from the committee members. He will testify before the Senate Banking Committee tomorrow and the House Financial Services Committee Thursday morning.
This event will be televised and watched very closely by market participants and analysts. ... We usually see the most movement in rates during the first day of this semi-annual testimony since his prepared words for both appearances are usually quite similar to each other, meaning that the second day of testimony rarely gives us anything we did not hear during the first day.
Thursday brings us a couple of economic reports, but none of them are considered to be highly important to the markets. The data itself could lead to minor changes in mortgage rates, but if Wednesday’s events lead to a sizable rally or sell-off in the bond market, that activity may carry into Thursday’s trading also. In other words, we may have a fairly quiet day or possibly a very active day Thursday, depending on how tomorrow goes. Source info by mortgagecommentary.com and Kent Friend
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