Monday Market Commentary

by Alex Stenback on March 21, 2005

Forest_of_windows_1 Photo ‘Forest of Windows’ (in St. Paul) by Andy Consgrove, Visual Gratification

Last Week – Rates up Slightly
Mortgage bond prices bounced around amid dollar volatility and high oil prices. For the week, interest rates on most loans were up only very slightly, if at all  – perhaps shedding about 1/8 of a discount point.
This Week – What to Watch
The Fed meets Tuesday (which is obviously the biggest item on the calendar) and is expected to hike core rates by 25 basis points, or .25%. Producer price index, consumer price index, durable goods orders, and new home sales data also loom large this week.
Also of note: The bond market closes early Thursday and is closed the entire day Friday (in honor of Good Friday.) These short weeks can cause some volatility as investors square up positions before an extended break.

ยทWhat Moves Rates? []: Remember, The Fed has no direct control of mortgage rates – only indirect influence.

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