As a Mortgage Planner, it’s a necessity to have the essential knowledge of ”what’s going on” in the market place as well as the economy. I read many publications to keep me on track and I would like to share a few things to watch for the week of March 12, 2007. Unfortunately rates do not follow one indicator. There are too many economic events that effect where rates are going for both short and long term. The best we can do is follow what current economic indicators are doing and try to analyse what they’ve done historically and try to make an educated prediction from there. What a mouth full. So here is a quick blurb for the week.

Mortgage bond prices fell pushing rates higher last week. The beginning of the week saw bonds rally as former Fed Chairman Greenspan continued to weigh upon the financial markets. He was quoted as seeing a “one-third probability” of a US recession this year. The employment report last Friday erased the improvements when unemployment came in stronger than expected @ 4.5%.

For the week, interest rates on government and conventional loans rose by about 1/8 of a discount point. The consumer price index Friday will be the most important event this week. Retail sales, producer price index, industrial production, capacity utilization, and consumber sentiment data will also be important.

Why Data is Important
One of the easiest and most important things ito do when making a decision whether to float or lock a loan is knowing what data is going to be released. Economic releases are important because they provide a snapshot of a portion of the economy. In addition this is the last full week of data heading into the Fed Meeting March 21, so the market may be more volatile than usual.

I would like to see this website be an asset to you. From this point on I’ll try my best to give you a market update with the upcoming economic indicators and fed meetings etc, in hope that it will help to further educate you. So when the time to lock in an interest rate comes, you’ll know.

Source: Mortgage Market Information Services, Inc

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