Last weeks weak data on the housing sector as well as last week’s Initial Jobless Claims Report are all factors that could prompt the Feds to consider doing another round of bond buying, more commonly referred to as Quantitative Easing. This is important to home loan rates. Remember, home loan mortgage rates are tied to mortgage bonds, therefore as bonds improve, home loan rates respond accordingly and helping the housing market by keeping home loan rates low would be a a good enough reason the Feds would do another round of Quantitative easing (bond buying).
As we move into this week the economic news to keep your eye on is Wednesday’s ADP Employment Report, which will be the precursor to the government report on Friday. On Thursday we get the Initial Weekly Jobless Claims. Last week jobless claims inched up a bit to 359,000 so this weeks report will see if that trend is continuing or just the seasonal adjustment made by the Feds.
The important thing you should take away is home loan rates are near all-time lows and now continues to be a great time to purchase a home. If we can help answer any questions for you please contact us as we would be glad to help you.