The Week in Review:
The US Treasury sold a record amount of government debt last week to support stimulus plans. With such a large amount of debt being issued, last week could have been a tough one for the bond market and home loan rates. As it turns out, the demand for the debt issuance was high and as a result the bond market ended the week on a positive note and home loan rate decreased by approximately .25%.
What to Expect:
Volatility can often occur in a holiday-shortened week, particularly when there are a good number of reports on tap. This week we’ll get a read on the housing market, consumer confidence, manufacturing and most importantly the job market. Home loan rates have been on a decreasing trend since June 10th. Unless we get some really poor economic data, I don’t believe rates will improve any more this week.
Breg-ometer:
Next 7 days: Daily ups and downs ending with slightly higher rate
Next 30 days: We’ll see rates in this same general range
Next 90 days: Neutral
Courtesy of:
Bob Bregitzer
[where: 30080]