Apr
05

Mortgage Market Trends for week ending April 2, 2010

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Last week saw mortgage rates move slightly upward as some more signs of economic recovery appeared.  The esteemed ISM Manufacturing Index surged to 59.6, the best reading since 2004, suggesting that manufacturing will not be tapering off as some analysts had feared.  Consumer Confidence also moved upward, but still remains low compared to better economic times.  The latest employment data also suggested better times ahead with 162,000 jobs created last month, and no change to the unemployment rate. Last week also marked the end of the Fed’s program of buying mortgage-backed securities.  While there was certainly no major impact to mortgage rates, it will take a few months to sort out whether the timing was good.  Without the Fed’s support, rates will be influenced more now by economic factors.  If the economy improves, rates will move upward.

This week is a fairly light week in terms or economic news and data. We’re likely to see some upward movement in rates as the market digests all the data from last week.

Graph Courtesy from NY Times in an article by Bob Tedeschi March 31, 2010.  Data provided by Jeff Carpenter, Director of Finance, GFI Mortgage Bankers, Inc.

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