Mortgage Market Trends for week ending March 12, 2010


Mortgage Chart

Last week saw mortgage rates again holding steady, as investors balanced economic news and the pending end to the Federal Reserve’s campaign of buying mortgage debt. Economic news was a bit light last week, and many appeared to be waiting for this week for insight into the economy and rates.

Markets will have plenty to digest this week, with many important economic reports and a quick, but critical, one-day meeting of the Fed. With such a muted reaction after the Fed raised its discount rate at its last meeting, some analysts are expecting the discount rate to go up again. However, expectations are for the Fed to hold its Fed Funds rate steady. As has been the case for some time now, the accompanying policy announcement will likely have greater influence. Every indication that the Fed believes we are returning to “normal,” will be that much more upward pressure on rates. This week also holds both the CPI and PPI. While inflation seems to be very muted with this slow economic recovery, the minute it starts picking up, mortgage rates should also start moving up.

Graph Courtesy from NY Times in an article by Bob Tedeschi March 10, 2010.  Data provided by Jeff Carpenter, Director of Finance, GFI Mortgage Bankers, Inc.

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