Another week of volatility for Mortgage Bonds ends with rates a little higher than where they started. The 30 Year Fixed Rate ended the week at 4.255% APR. Much of the volatility was due to the Eurozone debt crisis. On Thursday Bonds were down on news that Europe had a solution to their debt crisis, but on Friday a poor Italian Bond Auction reminded the markets that the European debt crisis is far from over, and investors fled to the safety of U.S. Bonds which was good for Mortgage Rates.
The focus next week will be on Wednesday’s Federal Reserve Board’s meeting and the important Jobs Report. Both will have an impact on the markets.
Bond prices remain above an important level of support and therefore I recommend not locking into a mortgage rate at this time, but rather floating into next week for the possibility that rates may improve.
The Federal Housing Finance Administration announced plans to help struggling homeowners refinance. The program is intended to help homeowners under water refinance. It is not intended to move mortgage rates lower. Contact our office to find out if you are eligible.
The S&P Case Shiller Index showed 10 of 20 cities saw home price increases.
New Home Sales up 5.7% in September.
Personal Spending rises 0.6% in September. Income rises 0.1%.
Consumer Confidence for September was a miserable 39.8.