This week is packed full of scheduled economic indicators that may impact mortgage rates. Mortgage rates are based on mortgage backed securities (bonds). Typically, good news for stocks means that mortgage rates may rise as investors will trade the safety of bonds for a greater return received from stocks. The reverse is also true. Signs of inflation will also impact mortgage rates for the worse. Here are some of the scheduled reports to be released this week:
Tuesday, May 31, 2011: Chicago PMI and Consumer Confidence
Wednesday, June 1, 2011: ADP National Employment Report and ISM Index
Thursday, June 2, 2011: Initial Jobless Claims and Productivity
Friday, June 3, 2011: THE JOBS REPORT and ISM Service Index
Other data and world events also impact mortgage backed securities and mortgage rates, such as Europes debt issues.
Does your mortgage originator know the next economic indicator that’s scheduled to be released that may impact mortgage interest rates? Does your mortgage originator have access to live pricing of mortgage backed securities? I’ve had Seattle area competitors ask why I tweet about which way rates are trending. They don’t know what’s going on in the markets, or what may impact rates, this type of mortgage originator simply wait for their rate sheets to be issued.
I encourage you to ask your mortgage originator what is the next scheduled economic indicator that may impact mortgage rates? If they say “huh?” or offer an excuse, is this who you want to help you with one of your largest debts?