Apr
13

Mortgage Market Trends for week ending April 9, 2010

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Mortgage rates began heading upward last week as markets continued to digest the positive economic news from the previous week, and reacted to more positive news last week. The ISM Services Index rose sharply last week on the heels of a larger than expected increase in the ISM Manufacturing Index. While manufacturing has lead much of this current recovery, the increase in the Services Index reveals that we may be on the verge of seeing an even larger portion of the economy, services, moving into a sustainable growth situation

Without the support of the Fed’s program for buying mortgage-backed securities, next week could be one of the more volatile weeks we’ve seen in a while for mortgage rates. Many very important economic reports are due including Retail Sales and Industrial Production. If these two reports come in near expectations, it is very likely that mortgage rates will continue moving upward next week. However, a 0.0% or 0.1% change in the CPI could help temper that upward movement.

Graph Courtesy from NY Times in an article by Bob Tedeschi April 7, 2010.  Data provided by Jeff Carpenter, Director of Finance, GFI Mortgage Bankers, Inc.

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