This week in Mortgage Rates

The Week of December 31st; starts with more negotiations in Washington on the debt talks and tax increases. Over the weekend there were many meetings but as has been the case, nothing of substance that can get any agreement. The stock and bond markets are starting quietly this morning with the Senate scheduled to convene at 11:00 am. There is still the potential something may get accomplished at the last minute, based on talks so far though, we wouldn’t bet on it. Going over the Cliff isn’t as significant has media has made out tax increases that are due to kick in tomorrow can easily be negated in a retroactive bill. Neither side wants taxes higher except the President on high income earners.

The week has a number of key economic reports but not until Wednesday. This is employment week; early estimates are non-farm jobs increasing by 150K, non-farm private jobs +145K, the unemployment rate unchanged at 7.7%. Various economic reports over the last few weeks have had less direct market impact with all focus on the Cliff talks. Also this week both Dec ISM indexes, manufacturing and services, Nov construction spending, weekly claims, and Nov factory orders. Technically the 10 yr note and MBS markets are essentially neutral awaiting the results from Washington.

This could be a volatile week depending on the outcome of the Fiscal Cliff, once Washington settles on the terms we will be able to see the markets adjust.  For the moment, we ended last week on a positive note in the Mortgage Back Securities with mortgage rates improving a little.  We will watch carefully as the days unfold.

For more information on mortgage rates and how they adjust, feel free to email me anytime at Bill@billnickerson.com. 

Bill Nickerson

Vice President Mortgage Network

179 Great Road Suite 214, Acton MA 01720

978-399-1313

Bill's BLOG

Providing Mortgages Since 1991

NMLS # 4194

Commercial   Residential     Reverse FHA/VA

Posted via email from Bill's Mortgage News

Rates and The Fiscal Cliff

This Week; of course it’s the Fiscal Cliff in the headlines. This week the FOMC meeting concludes on Wednesday with expectations the Fed will announce it will continue to buy US long dated treasuries when Operation Twist expires at the end of this month. The key economic data isn’t out until later this week with November retail sales, PPI, CPI, industrial production and factory use. Treasury will auction $66B of notes and bonds starting Tuesday through Thursday, 3 year, 10 year and 30 year issues will be sold.

 

There has been no outward progress on the stand-off between President Obama and Republicans in the House. Last week a number of Republicans were leaning toward compromise with Obama on tax increases for the wealthy but the leadership has not bent, at least as far as public comments indicated. The President is unwilling to move off his position while the Cliff is coming quickly. Whether or not the country goes over, based on comments and forecasts from pundits, is now about 50/50. Whatever comes of this intransigence it is unlikely the this issue will be solved. The likely end game as it appears now is both parties will agree to extend the Bush tax cuts for a short time through the beginning of next year, allowing more time to look incompetent. Washington politicians haven’t been able to accomplish much over the last two years; so far the Cliff negations are no different.

 

The bond and mortgage markets haven’t moved much over the last three weeks. Until something significant occurs the rate markets are not likely to change much. No decline in rates and no increases of significance. The same is also expected in the equity markets.

If you have any questions in regards to the markets or new mortgages, feel free to call me anytime.

Bill

Sincerely,

Bill Nickerson

Loan Officer NMLS# 4194

Mortgage Network, Inc.

179 Great Road

Acton MA 01720

978-399-1313  office

877-367-4416 fax

978-273-3227 cell

Massachusetts Licensed Lender & Broker MC2668

WEBSITE   EMAIL    BLOG        

Posted via email from Bill's Mortgage News