Apr
19

Mortgage Market Trends for week ending April 16, 2010

By


Last week’s economic data continued to be mostly positive, but mortgage rates slid downward. This manufacturing-lead recovery continues to maintain its pace, with Industrial Production numbers revealing solid gains for manufacturing and mining issues. While the housing and labor market will likely be a major drag on the recovery for some time, retail sales did tick upward more than expected.  As economically positive as most of last week’s news was, inflation at the consumer level of the economy is all but absent.  This should enable the Fed to maintain its stance regarding low interest rates for the foreseeable future.

With the Dow moving over 11,000 last week and Treasury Secretary Timothy Geithner’s remarks this weekend about the economy growing faster than expected, we could see some additional volatility in the bond market.  If we get encouraging news, especially if it includes positive news on new and existing home sales, we could see mortgage rates begin moving upward again.

Graph Courtesy from NY Times in an article by Bob Tedeschi April 14, 2010.  Data provided by Jeff Carpenter, Director of Finance, GFI Mortgage Bankers, Inc.

Comments are closed.