Where Are Home Loan Rates Trending?
There's a lot of news on tap for this week, starting off right away Monday with the Empire State Index, Industrial Production and Capacity Utilization. These reports will give us a look at the manufacturing sector - and any bad news could certainly shake up the markets.
We'll also see an update on the health of the new construction sector of the housing market, with reports on Building Permits and Housing Starts coming on Tuesday.
Perhaps the biggest news of the week will be the inflation news carried in the Producer Price Index on Wednesday and the Consumer Price Index on Thursday. As stated above, hints of inflation fears have the potential to negatively impact the markets - and can quickly drive Bond prices lower and home loan rates higher. The news from these reports will be even more interesting, since they come just after the Fed's Monetary Policy and Fed Funds Rate decision on Tuesday...and many members of the Fed have lately been expressing their growing concerns about inflation. The Policy Statement following the Fed meeting is always dissected carefully - but with the rising fears of the inflation genie escaping the bottle, this Statement takes on even more significance.
Remember: Overall, weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. Go to www.tombrewerjr.com for more information.
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