This entry was posted on Sunday, March 4th, 2007 at 1:56 am and is filed under Mortgage Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Sacramento Mortgage Rate Update
The benchmark 30 year fixed rate loan fell last week to 5.75%.
Spooking the Market
It was a wild week the financial markets. A sell-off in the Chinese stock market triggered a major sell-off in U.S. stocks that was further spooked by Alan Greenspan’s comment about a possible recession later in the year, worries about Iran and Afghanistan, a downward revisions to some previous economic indicators.
The stock market was primed for a “correction” after a long bull run, and the week’s event provided the catalyst that sent investors fleeing to the relative safety of bonds. That in turn drove yields (and mortgage rates down). The widely watched 10 year Treasury note finished the week at 4.516%.
What to Watch For
On deck for this week are a few significant reports that could move mortgage rates.
The revised Productivity index for the 4th Quarter of 2006 and January’s Factory Orders come out Tuesday. Weaker numbers in either will show up as lower mortgage rates.
The Fed Beige Book will be posted Wednesday afternoon, the January’s Goods and Services Trade Balance report will be posted Friday. Both of these are yawners compared to the final report of the week: February’s Employment report. A slowdown in job growth or an increase in unemployment will improve mortgage rates.
If you are in the middle of a purchase or refinance and wonder whether to lock your rate, my advice is to take the lock. You have more to lose than you stand to gain by gambling.
Got a question about the rate you are being quoted? Email me.