|
|
Bernanke
Surprises Investors
It was a
volatile week for mortgage rates, reacting to mixed economic data and
unexpected comments from Fed Chief Bernanke. The various influences roughly
offset each other, though, and mortgage rates ended the week essentially
unchanged.
Testifying
before Congress on Wednesday, Fed Chief Bernanke caused a swift move higher
in mortgage rates. His comments lowered investor expectations for a third
round of Treasury bond and MBS purchases. The possibility for additional
demand from the Fed has lifted MBS markets over recent months, and those
gains were partially reversed after Bernanke's speech. As the economic data
has improved in recent months, the need for additional Fed easing has
seemed to decrease, but this week's testimony was seen by many investors as
one of the first signs that Fed officials share this view.
This
week's housing data was once again positive, as January Pending Home Sales
rose 2% from December. They are at the highest level since April 2010, when
the deadline to take advantage of home buyer tax credits spurred sales.
Since Pending Home Sales are a forward-looking measure, this data suggests
that home sales may improve in coming months.
|
|
|
|
Also Notable:
- Core PCE inflation was a moderate 1.9% higher
than one year ago
- Continuing Jobless Claims fell to the lowest
level since August 2008
- Consumer Confidence rose to the highest level
since February 2011
- The Dow posted a close above the 13,000 level for
the first time since May 2008
|
|
|
|
|
|
|
|
|
|
Average
30 yr fixed rate:
|
|
Last
week:
|
-0.03%
|
|
|
This
week:
|
0.00%
|
|
|
|
Stocks
(weekly):
|
|
Dow:
|
12,950
|
-50
|
|
NASDAQ:
|
2,980
|
+20
|
|
|
|
Week
Ahead
The
biggest economic report next week will be the important Employment data on
Friday. As usual, this data on the number of jobs, the Unemployment Rate,
and wage inflation will be the most highly anticipated economic data of the
month. Before the employment data, ISM Services and Factory Orders will be
released on Monday. Productivity will come out on Wednesday. The Trade
Balance is also scheduled for Friday.
|
CLICK HERE TO GET PREQUALIFIED FOR A HOME LOAN TODAY!!
|
|
Comments
Post a Comment