Monday Market Commentary: Mortgage Rates Crossroads
Graphic via MSNBC
Last Week:
The mortgage interest rate market unwound a bit on Friday as renewed inflationary fears crept into the trading pits. Sparked by some hawkish anti-inflation commentary by several Fed officials, Friday's sellof resulted in a rise in rates of .125% for most mortgage products.
This Week:
The economic calendar this week has some serious market-moving potential as traders will be looking for direction. Is the economy entering (or in) recession? Does it matter if the recession is accompanied by persistent inflation? From a mortgage interest rate standpoint, a slowing economy and moderating inflation will help move rates lower. Friday's employment report will be closely watched - barring any substantial revisions to previous reports, a weak report will open the door for lower rates. A strong report could send rates up fairly quickly.
This Week's Econocalendar [Barron's]