Earnings estimates warnings issued on Wall Street , oil prices rose, and the Dow closed down 220 points on Friday. Mortgage bond prices rose nicely throughout the week as rates fell accordingly, however mortgage bonds failed to capitalize fully on market woes at the end of this past week. Inflation still remains present and further inflation is a valid concern without action from the Fed and a reduction in oil prices.
This week consumer confidence reports on Tuesday and is expected to remain low and the Fed meets on Wednesday and is not expected to change the short term rates in the near future. GDP, initial jobless claims and existing home sales report on Thursday and Personal Consumption Expenditures and Core PCE report on Friday morning. We look to these economic reports as well as many other factors for guidance on mortgage interest rates over the next two weeks.
Home prices have further to fall in many areas of the country in order to soak up excess inventory. The current market continues to provide outstanding opportunities for home-buyers and investors, alike.
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