Mar
29

Mortgage Market Trends for week ending March 26, 2010

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Last week saw mortgage rates again staying mostly flat with some mixed economic news. GDP for the last quarter of 2009 was revised downward to 5.6%, which was still a good improvement over previous quarters. Housing numbers were down again, giving some analysts concern about how housing will fair over the next few months, especially if rates start moving upward.

This week has some very important economic news for the markets to digest, including employment data, the ISM Manufacturing Index, and Consumer Confidence. With more signs that the recovery is slowing, every bit of data that reinforces that will help to hold mortgage rates from moving upward. However, the end of March is the end of the Fed’s program of buying mortgage backed securities. While this may pass as a non-event, it could also set mortgage rates on an upward trend that may last for some time. If equities continue to rally with good economic news this week, especially a drop in unemployment and a positive increase in jobs, we may see rates climbing in the near future.

Graph Courtesy from NY Times in an article by Bob Tedeschi March 24, 2010.  Data provided by Jeff Carpenter, Director of Finance, GFI Mortgage Bankers, Inc.

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