Mortgage Update for the Week of October 10, 2011


Today we recognize Christopher Columbus which means that the bond markets are closed. Did you know that October 9th is Lief Erikson Day?  Speaking of Europe, the DOW is up 277 as I write this post (10:35 am) since it looks like Europe may be getting closer to solving their financial crisis.  There are no economic indicators scheduled to be released today.

Here is what's scheduled for the remainder of the week:

Wednesday, October 12:  FOMC Minutes

Thursday, October 13:  Balance of Trade and Initial Jobless Claims

Friday, October 14: Retail Sales and Consumer Sentiment (UoM)

Remember, typically good news for the stock markets tends to drive mortgage rates higher as investors will trade the safety of bonds (like mortgage backed securities) for the greater returns possible with stocks. Last Friday was an example of this when the Jobs Report was released with better than expected data.

While we hope for good news for our economy and signs of recovery, keep in mind that this may cause mortgage rates to trend higher. Signs of inflation will also drive mortgage rates higher.

Although rates are still historically low, they have been trending higher over this past week. 

With the bond markets closed for Columbus Day, some of our lenders are taking the day off and we do others available should you decide you want to lock in a mortgage rate today for purchase or refinance in Washington.

Happy Columbus Day and belated Leif Erikson Day.

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