May
03

Mortgage Market Trends for week ending April 30, 2010

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Mortgage rates continued to remain fairly flat last week, even as the recovery seemed to solidify its footing. The Federal Reserve left interest rates unchanged, as expected.  The accompanying policy statement did note that “economic activity has continued to strengthen and that the labor market is beginning to improve.” while the Fed believes that it will keep interest rates low for an “extended period” of time, it is worth noting that interest rates below 1.0% can be considered low.  With the Fed Funds rate at 0.25%, the Fed could begin lifting rates at any time.  GDP came in at 3.2%, the third quarter in a row in positive territory.

Two reports will probably dominate this week’s economic news: the ISM Manufacturing Index, and the Employment Report.   If the ISM Index climbs above 60 and unemployment shrinks with more than 200. 000 jobs created last month, we could see mortgage rates moving upward.  However, even very positive reports will continued to be tempered by international concerns over Greece’s bailout.

Graph Courtesy from NY Times in an article by Bob Tedeschi April 28, 2010.  Data provided by Jeff Carpenter, Director of Finance, GFI Mortgage Bankers, Inc.

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