What's Ahead For Mortgage Rates This Week : December 27, 2011

Mortgage markets worsened last week on renewed optimism from the Eurozone, additional evidence of a U.S. economic recovery, and ongoing strength in housing.

The action sparked a stock market rally at the expense of mortgage bonds, sending conforming and FHA mortgage rates meaningfully higher for the first time in more than 2 months.

Markets closed early Friday and remained closed Monday. When they re-open today, conforming mortgage rates will already have bounced off last week's new, all-time lows.

As reported by Freddie Mac's weekly mortgage rate survey, the average 30-year fixed rate mortgage fell to 3.91 percent nationwide, with an accompanying 0.7 discount points plus closing costs. 1 discount point is equal to 1 percent of your loan size such that 1 discount point on a $100,000 loan is equal to $1,000.

It's not just the conventional 30-year fixed that made new lows last week, either. All of Freddie Mac's reported rates fell to new, all-time lows.

• 30-year fixed : 3.91% with 0.7 discount points
• 15-year fixed : 3.21% with 0.8 discount points
• 5-year ARM : 2.85% with 0.6 discount points

These rates are no longer valid, however. FHA mortgage rates rose slightly last week, too.

This week, mortgage rates will be more volatile than usual. There isn't much economic data on which to trade, and it's a holiday-shortened week (again). Look for geopolitics and momentum to nudge markets forward, therefore -- a potentially bad combination for today's rate shoppers. There is very little room for mortgage rates to fall, but lots of room for them to rise.

If the stock market rallies to close 2011, mortgage rates will rise right on with it.

For now, rates remain historically low. If you've been shopping for a mortgage -- waiting for rates to fall -- this last week of the year may be your last chance at sub-4 percent, fixed-rate mortgage rates. Don't wait too long or you might miss it.

It's a good time to execute on a rate lock.

What's Ahead For Mortgage Rates This Week : December 12, 2011

Mortgage markets were mostly unchanged for the 6th consecutive week last week as Wall Street's uncertainty regarding the future of U.S. and global economies remain.

Mortgage bonds made gains made through the early part of the week, which caused mortgage rates in california to drop Monday through Wednesday afternoon. Those gains were erased, however, as 23 of 27 Euro leaders reached agreement on fiscal coordination and budget planning, sparking optimism for the future of the Eurozone, in general.

Mortgage rates rose Thursday and Friday.

This week, the momentum may continue. The main story we'll be watching is the Federal Open Market Committee's Tuesday meeting -- its 8th scheduled meeting of the year and its last until 2012. 

When the Fed meets, mortgage rates are often volatile.

At its meeting, the FOMC is expected to vote the Fed Funds Rate unchanged within its current range near zero percent. However, it won't be the Fed's vote on the Fed Funds Rate that changes markets. Wall Street is keyed in to two other elements, instead.

The first element is the verbiage of the FOMC's press release to markets. Issued upon adjournment, the FOMC's press release identifies strengths and weaknesses in the U.S. economy, and offers an outlook for the future plus potential threats. The "tone" of the press release can change how mortgage bonds trade.

If the Fed describes an economy in recovery with few threat to growth, mortgage rates are likely to rise post-FOMC. By contrast, if the Fed says the economy has slowed, mortgage rates should fall.

The second element on which Wall Street is focused is the likelihood of new, Fed-led economic stimulus. Should the Federal Reserve modify existing support programs, or introduce new ones, mortgage rates are sure to shift. Unfortunately, we can't know in which direction -- it will depend on the size of the program and its expected impact on the U.S. economy.

The Fed adjourns Tuesday at 2:15 PM ET.

Beyond the Fed, there is other rate-moving news, too, including Tuesday's Retail Sales report, Thursday's Producer Price Index, and Friday's Consumer Price Index. Each has the capacity to change mortgage rates throughout Riverside so if you're floating a mortgage rate, it may be a good time to lock one in. 

Freddie Mac reports the average 30-year fixed rate mortgage at 3.99% with 0.7 discount points, plus closing costs.

What's Ahead For Mortgage Rates This Week : December 5, 2011

Mortgage markets made little change last week for the fifth time in as many weeks.

As Wall Street watched both the Eurozone and the U.S. regain their respective footing, expectations for a new Fed-led stimulus increased, which prevented mortgage rates from rising.

According to Freddie Mac, the average 30-year fixed rate conforming mortgage rose just 2 basis points last week to 4.00% nationwide with an accompanying 0.7 discount points. 

1 discount point is equal to 1 percent of your loan size.

For every $100,000 borrowed at 4.00 percent, therefore, today's california mortgage applicant should expect to pay $700 in "points". Mortgage rates for "zero-point loans" are higher than Freddie Mac's published, average value.

This week, with few economic releases set for release, last week's big stories should carry over into the current one -- the biggest of which was a worldwide, coordinated central bank effort to increase system liquidity.

The European Central Bank, Bank of England and U.S. Federal Reserve were joined by the central banks of Japan, Canada and Switzerland in the effort. Stock markets rallied on the news.

Another of last week's big stories was the sharp drop in the U.S. Unemployment Rate.

After hovering near nine percent since April, the Unemployment Rate broke out of range, dropping to to 8.6% in November. This is the lowest national Unemployment Rate since March 2009, a milestone achieved via the combination of new jobs created (+192,000 in November with revisions) plus a smaller U.S. workforce.

The U.S. economy has added 1.9 million jobs in the last 14 months.

Lastly, last week's New Home Sales and Pending Home Sales Index releases support the growing belief that the U.S. housing market is in recovery. Both reports showed strong growth for October, corroborating what home builders have been saying -- the housing market is improving and buyer ranks are growing.

Home supplies are lower in many U.S. markets.

This week, rate shoppers in Riverside should be on alert. Market momentum changes quickly, and rates are currently anchored by the expectation of new Federal Reserve stimulus. The Fed meets December 13, 2011. As that date approaches, expectations could change, causing rates to rise.

Mortgage rates remain near all-time lows. It's a good time to lock a rate with your lender.

What's Ahead For Mortgage Rates This Week : November 28, 2011

Mortgage markets worsened slightly last week through a bouncy, holiday-shortened trading week. Markets were closed Thursday for Thanksgiving and re-opened only briefly Friday.

As in past weeks, though, economic, political, and financial news from the Eurozone dictated the direction of U.S. mortgage-backed bonds.

As Greece -- and now Italy -- have faltered, investors have sought to preserve their respective principal, moving money from unsafe assets to safe ones, a class which includes Fannie Mae- and Freddie Mac-backed mortgage bonds.

This investment pattern is known as "safe haven" buying and it's why mortgage rates tend to improve when large economies grow unstable. Government mortgage bonds are considered among the safest securities available.

The average 30-year fixed rate mortgage is available for 3.98%, according to Freddie Mac, with borrowers expected to pay an accompanying 0.7 discount points. 1 "discount point" is a loan fee equal to 1 percent of your loan size.

"No-point loans" carry higher rates than the Freddie Mac-published figures, but come with lower closing costs.

This week, there are several reasons to expect mortgage rates to rise throughout california.

First, markets are speculating that the IMF will lend Italy 600 billion euro to help avert financial crisis. This move would reverse the safe haven buying that's characterized the last few weeks of trading, thereby leading mortgage rates higher.

A second reason is that they are early reports that Black Friday shoppers out-spent analyst estimates. Consumer spending is the largest part of the U.S. economy so, if spending is up, the economy should be up, too. 

As before, this would reverse some of the safe haven buying that's helped keep mortgage rates low.

Lastly, this week is stuffed with new data including Friday's always-important Non-Farm Payrolls report. Wall Street expects 116,000 net new jobs created in November. If the actual figure is much higher, mortgage rates will rise.

Expect mortgage rates to be volatile this week. Your quoted mortgage rates could vary by as much as a quarter-percent from day-to-day. If you're nervous about losing a low rate that's been offered to you, consider locking in.

What's Ahead For Mortgage Rates This Week : October 24, 2011

Mortgage markets improved last week on worries that Eurozone leaders would decline to send aid to Greece. These concerns overshadowed optimism for the U.S. economy, the result of several strong data points.

Conforming rates across california eased, giving homeowners and rate shoppers yet another chance to nab historically-low mortgage rates. FHA mortgage rates remained low, too.

According to Freddie Mac, the average 30-year fixed rate mortgage rate is now 4.11% with 0.8 discount points. For loans with zero points, expect to pay slightly higher rates. 

Rate-shoppers and home buyers would do well to pay attention.

This week's may be as good as mortgage rates get. Possibly forever. This is because the market conditions that helped rates stay low -- a weak U.S. economy and uncertainty in Europe -- are eroding.

The U.S. economy has posted strong jobs, spending, and confidence figures in the past 3 weeks and Eurozone leaders appear closing making a deal that will help Greece avoid a sovereign debt default.

Once markets no longer worry about these two events, rates are expected to surge.

Eurozone leads met all weekend and have chosen Wednesday, October 26, as a likely "decision date" for Greece. If that date holds, and if an agreement can be reached, U.S. mortgage bonds will sell-off and mortgage rates will rise.

The housing sector is set to release important news this week, too.

After last month's increase in Housing Starts and steady Existing Home Sales report, Wall Street will watch for this week's New Home Sales, Case-Shiller Index and Pending Home Sales Index. If momentum stays strong for housing, that, too, should pressure mortgage rates higher.

Mortgage rates remain near all-time lows. If you've yet to lock your mortgage rate, or are still shopping, consider that rates have more room to rise than to fall. The "safe play" is to execute a lock today.

What's Ahead For Mortgage Rates This Week : October 11, 2011

Mortgage markets worsened last week as safe haven buying eased and demand for mortgage-backed bonds dropped. As in most weeks since March 2011, Greece and U.S. jobs dictated market direction.

Conforming mortgage rates in california rose last week, lifting rates off their all-time lows and causing consternation among the nation's would-be buyers and refinancers.

Last week's action may surprise you. After all, Freddie Mac's weekly mortgage rate survey said average, 30-year fixed rate mortgages had dipped, dropping to 3.94% -- the first time the average rate reported sub-4 percent.

A keen eye, however, revealed the another truth.

Yes, the average 30-year fixed rate mortgage did go sub-4 percent, but, in order to get those rates, applicants were suddenly required to pay 0.8 "discount points". This is an increase of 0.1 discount points from the week prior, a change in loan cost thatr reduces the benefit of falling mortgage rates.

1 discount point is equal to 1 percent of your loan size.

All of that is history now, however,. Rates climbed each day last week and are now at their pre-Labor Day levels. The Refi Boom may not be over, but it may be stalled.

This week, mortgage rates may continue to climb. There is talk within the Eurozone that Germany and France will come to Greece's aid, and that a plan will be solidified prior to November 3. This would boost stock markets at the expense of bonds, leading to higher mortgage rates.

In addition, last week's strong employment data has renewed speculation that the U.S. economy is, in fact, healthy so analysts are now watching for Friday's Retail Sales data. 

Because consumer spending is an economic catalyst, if Retail Sales shows strength, mortgage rates should rise.

And, lastly, there is a 10-year Treasury auction Wednesday. Mortgage bonds don't mirror the treasuries, but when demand is strong for treasuries, it's often strong for mortgage-backed bonds, too. Therefore, a strong auction of government debt will help hold mortgage rates down.

A weak auction should lead rates higher.

What's Ahead For Mortgage Rates This Week : October 3, 2011

Mortgage markets deteriorated last week as optimism for a Greek rescue package increased, and as U.S. consumers showed that, despite falling income levels, spending will not be slowed.

As reported by the government, household income dropped in August, falling 0.1 percent and marking the first monthly dip since 2009. Yet, consumer spending still rose, tacking on 0.1 percent. Consumer spending accounts for 70 percent of the U.S. economy.

In addition, last week Eurozone leaders approved a funding increase for the European "bailout fund". The additional funding raises the probability that Greece will avoid default on its sovereign debt, and that other nations including Italy, Spain, Ireland and Portugal will avoid similar default scenarios.

The moves drew money away from mortgage markets, causing rates to rise.

Conforming mortgage rates in california climbed last week, stymying would-be refinancers in search of the lowest mortgage rates in 60 years. Nationally, fixed rate mortgages were higher by as much as 0.25%.

This week, rates may continue climbing.

First, European leaders are expected to finalize the details of a Greek aid package, a move that would reverse the "safe haven" bid which has played a large role in keeping U.S. mortgage rates lows.

Second, the jobs report is due.

Economists are expecting 65,000 net new jobs in September and a slight increase in the Unemployment Rate. A deviation from either consensus expectation should cause mortgage rates to move. 

If it's shown that more than 65,000 jobs were created last month, mortgage rates should rise on the prospect of a recovering economy. To the contrary, though, if it's shown that fewer than 65,000 jobs were created, mortgage rates should fall.

The jobs report will be released Friday morning, 8:30 AM ET.

If you're shopping for a mortgage right now, be aware that rates could move in either direction, but there's a lot more room for rates to rise than to fall. The "safe" course of action is to lock a rate today.

 

What's Ahead For Mortgage Rates This Week : September 26, 2011

Mortgage markets improved last week as the Federal Reserve provided new market stimulus and the Eurozone continued to grapple with Greek's sovereign debt issues.

Conforming mortgage rates fell in california last week overall, dropping for the second straight week.

For rate shoppers, the best day on which to lock a mortgage rate last week proved to be Thursday.

Fresh off the Federal Reserve's Wednesday afternoon announcement that the group will launch a $400 billion program in support of longer-term bonds, mortgage rates fell. This occurred because mortgage rates are based on the price of mortgage-backed bonds, and mortgage bonds are a beneficiary of the Fed's new program.

Those gains were short-lived, however, because Friday morning, when the market opened, mortgage bonds were deteriorated, and that momentum carried through to the afternoon.

By the time the markets closed for the weekend, nearly all of the Fed-led gains had been drained from mortgage bonds.

Within a matter of 48 hours, the average 30-year fixed-rate mortgage rates had plunged -- then surged -- 0.250 percent.

The speed at which rates changed underscores how tough it can be to shop for a mortgage these days. If you were quick on Thursday, you locked your rate at its low. If you "slept on it", though, or even took too much time to think, you not only missed the best mortgage rates in more than 50 years, you missed it by entire quarter-percent.

On a $200,000 mortgage, that's an approximately monthly payment difference of $30 per month.

This week, mortgage rates should be similarly volatile. There is a lot of economic news set for release, and the Eurozone is rumored to have a plan to save Greece from debt default.  Depending on the strength of said data, and the passage of a Greek default plan, just how mortgage rates will change is unknown.

If you're shopping for mortgage rates, the safe path is to lock what you can. Mortgage rates may fall this week, but what if they don't? Rates have a lot farther to rise than to fall.

What's Ahead For Mortgage Rates This Week : September 19, 2011

Mortgage bonds worsened last week as Eurozone default fears eased abroad, and expectations for a domestic stimulus increased. 

Mortgage rates rose for the first time in three weeks last week, pushing conforming and FHA mortgage rates in california off their all-time, historical lows. Rates were at their lowest Tuesday morning, then rose through Friday's afternoon closing. 

Markets open this week with an eye toward the world's central banks.

In the Eurozone, central bankers (continue to) discuss the debt burdens of Greece and whether a coordinated intervention is necessary. Without it, some economists believe that the nation-state will default on its sovereign debt, which would then create additional financial stress within other nations in the region.

Italy is included among those countries.

In the United States, central bankers are making equally-important choices. 

The Federal Open Market Committee will emerge from a 2-day meeting Wednesday and is expected to announce new stimulus for the U.S. economy.

Since 2009, the Federal Reserve has twice stimulated the economy via an open-market, bond buying initiative. The programs created demand for mortgage bonds which, in turn, lowered mortgage rates for U.S. homeowners. If the Fed chooses this path a third time, expect for mortgage rates to fall in Moreno Valley.

If the Fed's sponsored stimulus is something else, however -- or if the Fed choose to do nothing -- mortgage rates may rise.

There is economic data due this week, including the Existing Home Sales and Housing Starts report, but it will be the world's central bankers that sit in spotlights. 

Expect volatile mortgage rates this week. Wall Street can only guess what governments will do to stimulate their respective economies and can lead to wild swings in pricing. The "safe play" is to lock a rate while we're still near all-time lows.

Once rates reverse higher, they're expected to rise quickly.

What's Ahead For Mortgage Rates This Week : September 12, 2011

Mortgage markets improved last week as a weakening Eurozone and questions about the U.S. economy sparked a global flight-to-quality. Conforming and FHA mortgage rates improved for the second week in a row.

The storylines should sound familiar by now. They are the same ones that have dictated the path of mortgage rates since April 2011. As a result, according to Freddie Mac, mortgage rates across california and nationwide are now at an all-time low.

Not in 50 years of tracking mortgage rates has pricing been so favorable.

Last week's holiday-shortened week didn't begin well for rate shoppers in Corona. Rates moved higher on the expectation of additional economic stimulus from two separate parts of the government -- the Federal Reserve and Congress. 

Wall Street held high hopes for Ben Bernanke's address to the Economic Club of Minnesota, and for the President's address to a joint session of Congress. It expected Fed Chief Bernanke to reveal clues about the Fed's next move; and it expected the President to unleash a massive jobs creation program that would put more Americans to work.

Both outcomes would have harmed mortgage rates as money flowed into stocks. However, neither happened. Bernanke kept mum on the Federal Reserve's options and the White House announced a jobs program smaller in scope than was expected.

Mortgage rates fell throughout the day Thursday then received a big boost Friday.

Amid rumors of a pending Greek default and the potential credit downgrades of several Eurozone banking groups, safe haven buying picked up and drove mortgage rates down.

Markets open this week with rates lower than they've ever been in history.

There isn't much new data set for release this week so market expectations will continue to set the direction in which mortgage rates go. If concerns for a Eurozone default rise, mortgage rates should fall. Conversely, if Eurozone chatter settles, mortgage rates should rise.

For now, mortgage rates remain at all-time lows and should not be taken for granted. If you see a rate that makes sense for you, consider locking it in.

What's Ahead For Mortgage Rates This Week : September 6, 2011

Mortgage markets improved last week on a weak jobs report, expectation for new market stimulus, growing evidence of a global economic slowdown. Rates were especially volatile, too, with the long Labor Day Weekend looming.

Overall, conforming mortgage rates in california improved for the first time in 3 weeks. On a product-by-product basis, though, mortgage rates are faring differently.

According to the Freddie Mac weekly mortgage rate survey, last week, the 30-year fixed rate mortgage was unchanged but the 15-year fixed rate mortgage and the 5-year ARM fell.

The 5-year ARM is at a new all-time low for qualified borrowers.

A drop in 5-year ARM rates throughout Corona without a corresponding drop in 30-year fixed mortgage rates signals that markets expect the economy to stabilize over the long-term but with weakness in the near-term. The 5-year ARM's ultra-low rates suggests marked weakness ahead.

The 5-year ARM may get another boost this week, too.

While U.S. markets were closed for Labor Day, Eurozone nations were hit with new wave of sovereign debt concern, this time centered on Italy. Greece, Portugal and Ireland have already been the subject of debt default debate this year. Italy's inclusion hit equity market hard and safe-haven buying re-commenced.

This should give a good start to mortgage rates this week. Look for rates to start lower. That's not to say, however, that they'll finish the week lower. With very little economic data due for release, markets will move on momentum and momentum can change in a flash.

The two biggest potential market movers both come Thursday. Fed Chairman Ben Bernanke speaks in Minnesota at 1:00 PM, and United States President Barack Obama addresses the nation at 7:00 PM. Both speeches are highly anticipated and should cause markets to move.

What's Ahead For Mortgage Rates This Week : August 22, 2011

Mortgage markets improved again last week, pushing mortgage rates in california to an all-time low; lower than the lows set last November, even.

Last week's low mortgage rate drivers are primarily European. Joining the debt concerns that have dogged Europe since March, a fresh wave of doubt has surfaced about the health of some Eurozone banks. The fears sparked a new wave of safe haven buying.

Global equities were socked last week and the Dow Jones Industrial Average fell for the 4th straight week. For home buyers in Riverside , though, the timing may be perfect. As stock markets lose, bond markets gain and when bond markets gain, mortgage rates drop.

According to government-group Freddie Mac's weekly mortgage rate survey, the average 30-year fixed rate mortgage fell to 4.17% last week with 0.7 points. This is the lowest rate-and-points combination in history.

The 5-year ARM fell to 3.08 with 0.5 points.

As mortgage rates fall, though, be wary of trying to "time the market". It's impossible to know when rates have bottomed and mortgage rates tend to spike without notice. That's what happened in May 2010. And then again in November 2010. And then a third time in April 2011.

When rates rise, they could tack on 0.500% or more overnight.

This week, there is a lot that can move mortgage rates. With housing data set for Tuesday release, the Eurozone stories still unfolding, and three Treasury auctions planned, it's best to be ready for locking.

If you're floating a mortgage rate or still shopping, consider locking your rate as soon as possible. Rates trended higher to close out last week and will be riding that momentum forward. Rates are lower than they've been in history.

Take advantage of it.

What's Ahead For Mortgage Rates This Week : August 15, 2011

Mortgage markets improved again last week. The combination of global economic uncertainty plus a dour outlook from the Federal Reserve pushed mortgage bonds to highs for 2011, and drove mortgage rates below their all-time lows.

Bonds were volatile, driven by the stock market's gyrations.

On 4 consecutive days, the Dow Jones Industrial Average moved by more than 400 points. Rate shoppers in california had no choice but to go along for the ride. 

The week began with the market's reaction to Standard & Poor's U.S. credit rating downgrade. Mortgage bonds caught a boost on the news, and pushing rates lower throughout the day. 

Tuesday, rates idled ahead of the Federal Open Market Committee meeting. There was speculation that the Federal Reserve would introduce a new round of economic stimulus but that didn't happen. Instead, the Fed pledged to keep the Fed Funds Rate in its current range near zero percent until mid-2013, at least.

Mortgage rates dropped on the announcement and continued to drop until they fell to their lowest levels of the year -- and of all-time -- late Wednesday afternoon.

This proved to be the lowest rates of the week.

Thursday and Friday were marked by better-than-expected jobless figures and an improving Retail Sales number. Mortgage rates rose slightly.

This week, mortgage rates should be equally as volatile. 

In addition to new bailout talks within the Eurozone, there is a bevy of economic data due for release in the U.S., as well as a full Fed speaker docket:

• Monday : Homebuilder Confidence Survey; Fed President Lockhart speaks
• Tuesday : Housing Starts; Building Permits
• Wednesday : Producer Price Index; Fed President Fisher speaks
• Thursday : Existing Home Sales; Fed President Dudley speaks
• Friday : Fed President Pianalto speaks

Mortgage rates have been trending lower in recent weeks and there are few reasons to think that trend will reverse. However, mortgage markets can be wildly unpredictable -- especially when acted upon by an outside force such as the Federal Reserve or the U.S. government.

Stimulus and rheotoric can change mortgage rates in a hurry.

Therefore, if you see today's rates and they fit within your budget, consider locking something in. Once rates start to rise, they're going to rise quickly. 

What's Ahead For Mortgage Rates This Week : June 6, 2011

Mortgage markets improved last week, carried by the same stories that have led markets better since April. Worries of a Eurozone sovereign debt default mounted, and the U.S. economy's revival showed itself to be slower than originally anticipated.

In Greece, the nation readied itself for its second bailout in two years. The austerity measures of last year have not worked as planned. There are concerns that a default would lead to contagion, delivering the Euro region into an economic tailspin.

These fears spurred a flight-to-quality in bond circles to the benefit of U.S. mortgage rate shoppers.

In addition, last week's U.S. jobs data fell short of expectations, giving another boost to mortgage markets.

There were 3 weak reports:

1. ADP showed 38,000 private-sector jobs created in May. Analysts expected 170,000.
2. The Department of Labor showed 422,000 Initial Jobless Claims. Analysts expected 415,000.
3. The Bureau of Labor Statistics showed 54,000 jobs created in May. Analysts expected 150,000.

Each of these data points underscores the fragile nature of the U.S. recovery, and the weaker-than-expected readings helped mortgage rates improve.

It's the sixth week of 7 that mortgage rates in Riverside have improved, setting the stage for a new wave of refinances.

This week, there is very little new data on which for mortgage bonds to trade. Therefore, expect the stories from recent weeks to continue to dominate headlines. If Greece's austerity and/or bailout plan is met with investor optimism, mortgage rates should rise. If the plan falls flat, mortgage rates should fall.

There will also be chatter about the U.S. debt ceiling, another potentially negative force on mortgage rates.

If you're floating a mortgage rate right now, consider locking in. There's a lot more room for rates to rise than to fall.

What's Ahead For Mortgage Rates This Week : June 28, 2010

Mortgage markets improved last week in response to mostly negative data about the U.S. economy, and the Federal Reserve's acknowledgement that Eurozone financial ills could cross the Atlantic.

Conforming and FHA mortgage rates fell last week, extending a rate rally that dates to early-April.  Mortgage rates have fallen to several, new, all-time lows during this period and last week was no different.

The best rates of last week hit Thursday morning.

This week, mortgage rates should be volatile, and may rise, too.  There's a bevy of data due for release, and market volume will be light with the long weekend looming.

Monday, the Personal Consumptions Expenditures Price Index is published. More commonly known as "PCE", the index is the Federal Reserve's preferred inflation gauge. When inflation is running higher than expected, mortgage rates tend to rise.

Conversely, when inflation is running lower than expected, mortgage rates tend to fall.

Tuesday, the Case-Shiller Index will be released for April's home prices, along with two consumer confidence reports.  As with PCE, strength tends to lead mortgage rates higher and weakness draws them lower.

Thursday, the National Association of REALTORS® releases its Pending Home Sales Index for May and the Department of Labor releases initial and continuing jobless claims number.

Then, Friday, the Bureau of Labor Statistics publishes June's jobs report, including the Unemployment Rate.  This number is always a market-mover, but with the long vacation weekend looming, it's expected that Friday's volume will be light on Wall Street, creating extra volatility. 

Mortgage rates may be erratic, in other words.

If you've been shopping for mortgages, you've been rewarded with falling rates. However, will rates cutting new lows almost weekly and expected to reverse soon, it may be a good time to lock up your savings.

Talk to your loan officer ASAP about locking in your rate.

What's Ahead For Mortgage Rates This Week : April 12, 2010

Mortgage markets improved last week to the delight of Moreno Valley rate shoppers.

Against a sparse economic calendar, Wall Street turned its attention to geopolitics in Greece and the Eurozone.  It didn't like what it saw. Safe haven buying buoyed mortgage bond markets last week as pricing recaptured two-thirds of its monumental losses from the week prior.

Despite last week's surge, however, conforming and FHA mortgage rates remain near their worst levels of the year and appear poised to increase throughout the summer months.

The U.S. economy is improving. From last week:

• Pending Home Sales posted a strong monthly improvement
• Wholesale Trade data pointed to higher consumer spending ahead
• Inflationary threats on the economy are receding, according to the Fed

Furthermore, continuing jobless claims were down again.

Good news for the economy is generally bad news for mortgage rates. Last week, that wasn't the case because of Wall Street's want for "safe" assets right now.  This includes mortgage bonds and is helping to keep consumer rates low. When the safe haven buying eases, rates should climb.

Meanwhile, this week, the calendar is back-heavy. 

There's no real data until Wednesday's Consumer Price Index, and then there's a flurry of new releases through Friday's market close including Retail Sales, Consumer Confidence and Housing Starts. 

Strength in these issues should push mortgage rates back up.

If you're floating or shopping a loan right now, be wary of market volatility. Rates have been jumpy since April 1 and mortgage rates are changing quickly. This week, locking in before Wednesday may be your safest, near-term rate locking strategy.

What's Ahead For Mortgage Rates This Week : April 12, 2010

Mortgage markets improved last week to the delight of Riverside rate shoppers.

Against a sparse economic calendar, Wall Street turned its attention to geopolitics in Greece and the Eurozone.  It didn't like what it saw. Safe haven buying buoyed mortgage bond markets last week as pricing recaptured two-thirds of its monumental losses from the week prior.

Despite last week's surge, however, conforming and FHA mortgage rates remain near their worst levels of the year and appear poised to increase throughout the summer months.

The U.S. economy is improving. From last week:

• Pending Home Sales posted a strong monthly improvement
• Wholesale Trade data pointed to higher consumer spending ahead
• Inflationary threats on the economy are receding, according to the Fed

Furthermore, continuing jobless claims were down again.

Good news for the economy is generally bad news for mortgage rates. Last week, that wasn't the case because of Wall Street's want for "safe" assets right now.  This includes mortgage bonds and is helping to keep consumer rates low. When the safe haven buying eases, rates should climb.

Meanwhile, this week, the calendar is back-heavy. 

There's no real data until Wednesday's Consumer Price Index, and then there's a flurry of new releases through Friday's market close including Retail Sales, Consumer Confidence and Housing Starts. 

Strength in these issues should push mortgage rates back up.

If you're floating or shopping a loan right now, be wary of market volatility. Rates have been jumpy since April 1 and mortgage rates are changing quickly. This week, locking in before Wednesday may be your safest, near-term rate locking strategy.