More Mortgage Rate info April 11, 2010

Last Week:
Georgia Mortgage rates climbed higher for the third week in a row.  Mortgage pricing weakened by about 44bps last week (about 6bps in rate), and the benchmark 10yr yield jumped 13bps last week as it tested support levels towards the end of the week at 3.60% before backing off to end the week. 
There was little in the way of economic data last week, and the focus for most fixed rate investors was on comments from the Fed about inflationary pressures and how they would react in the near future as many other countries have began to hike interest rates around the world. 
S&P 500 shed 0.3%, in relatively subdued trade. The modest decline follows a steep 4.2% gain in the previous two weeks.
In overseas news, the ECB raised its benchmark lending rate by 25 bps to 1.25%, as expected. Portugal requested aid from EU officials, also as expected.

Back in the U.S., the looming threat of a government shutdown had a limited impact on stock trading.

The Week Ahead:
The week ahead will have more data to digest as the calendar has significantly more points slated compared to last week.  The highlights of the week will be the monthly inflation reports (CPI and PPI) along with another round of treasury auctions beginning on Tuesday. 

With all of that in mind, the outlook for interest rates this year is a move higher with the 10yr slated to hit 4% by the end of the year as the Fed begins to unwind support currently in place.  We'll hear more from Fed officials in the week ahead as well. 

On Wednesday the administration will layout the spending plan, President Barack Obama and Congress are shifting from short-term budget concerns to debates over the nation's long-term economic future, and everything -- from Medicare and Medicaid cuts to tax hikes for the wealthy -- is on the table.

Economic Calendar:

Monday, April 11th
Tuesday, April 12th
8:30ET    Trade Balance
8:30ET     Import/Export Prices
1:00ET     Treasury Auctions
2:00ET     Treasury Budget

Wednesday, April 13th
7:00ET    MBA Mortgage Applications 
8:30ET    Retail Sales
10:00ET   Business Inventories
1:00ET    Treasury Auctions
2:00ET    Fed Beige Book
Thursday, April 14th
8:30ET   Weekly Jobless Claims   380k
8:30ET   PPI
1:00ET   Treasury Auctions

Friday, April 15th
8:30ET  CPI
8:30ET  Empire Manufacturing
9:00ET  Net Long Term TIC Flows
9:15ET Industrial Production/Capacity Utilization
9:55ET  U of Michigan Consumer Sentiment 

Peter Bright,  NMLS, 167540, GRMA, 247926
404-643-4793 Direct
(770) 217-4574  Efax
See my Blog at http://www.IM4that.com

THOUGHT OF THE WEEK  "Accentuate the positive, eliminate the negative, latch on to the affirmative. "

Capital City Mortgage Investments, Inc. Serving Georgia since 1994!
1420 Lockhart Dr. Suite 104
Kennesaw, GA 30144
Georgia Mortgage Residential Licensee,LENDER License #164510  and #7064
Licensed by the Georgia Department of Banking and Finance.



No comments: