Mortgage Market Update
Mortgage Market Update- January 13, 2013
While the bond sales this week showed signs of improvement, mortgage rates also climbed. During the week ending January 11, mortgage applications for new home buying increased just slightly over 11 1/2 percent while refinance applications increased 12 percent. These borrowers will be paying higher rates than if they had locked in their rates last week, in most cases, an increase of nearly six basis points on an average 30 year mortgage.
Other financial news
While economics analysts had anticipated a $41.8 billion trade deficit, it turned out to be much greater than expected coming in at $48.7 billion. This figure, which represents November 2011 figures, was up significantly from $42.1 billion in October which was also adjusted.
The upcoming week
This upcoming week promises to be a bit bumpier. Monday, Ben Bernake will be at the Fed meeting in Michigan, consumer spending data are expected this upcoming week, manufacturing and housing data reports will be coming out and on the 16th, the Fed Beige Book updates will be coming out which will reflect changes in all economic data from the various Fed regions.
The upcoming week’s reports are widely anticipated to have a much more serious impact on the markets in general and on mortgage rates in particular. Let’s not forget that we will all be watching how Congressional Republicans respond to the retreat with party leaders in Virginia. The outcome of this conference may determine just how serious a fight the White House will have on their hands over the impending debt ceiling which is expected to be reached around the 15th of February. While the White House has said they will not negotiate on whether or not to pay bills, many Republican lawmakers are threatening to fight to default or government shutdown.
Contact Core Mortgage Financial with any questions regarding mortgage rates or if you are uncertain whether it is a good time to lock in your purchase or Refinance.
Disclaimer: Mortgage Market update is for January 7-11, 2013. This article is for informational purposes only. The mortgage market update should not be used for rate lock guidanceance mortgage rate.