Monday Market Commentary: Mortgage Rates Holding Steady ahead of Fed Meeting

by Alex Stenback on May 7, 2007

May_7_rates
                                                                       Graphic Courtesy MSNBC
Last Week
The April employment report showed the economy created a less-than-expected 88,000 jobs (the consensus estimate was about 100k) which gave mortgage bond prices a bit of a lift last Friday, though not enough to move rates significantly lower for most borrowers.
This Week
All eyes are fixed on Wednesday’s Federal Open Market Committee meeting.  The Fed won’t change rates at this meeting (recall: the Fed does not set mortgage rates directly, only the Federal Funds Rate, but the interest rate markets are influenced a great deal by Fed policy) but with recent reports suggesting a decellerating economy, and (maybe) moderating inflation, standby as the post FOMC meeting statement is parsed for any sign a bias-shift towards lower rates.  Producer Price Index (Friday) also looms.
See Full Economic Calendar After the Jump/Click link Below

May_7_econocalendar

{ 3 comments… read them below or add one }

Zmajrzo June 3, 2007 at 12:17 pm
Zmajrzo June 3, 2007 at 12:17 pm
Zmajrzo June 3, 2007 at 12:17 pm

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