Monday Market Commentary: Mortgage Rates Unchanged Last Week

by Alex Stenback on March 31, 2008

Last Week:
Mortgage bonds endured yet another week of choppy action driven by a decidedly mixed bag:

  • Bear Stearns do over, from $2 to 10 per share,
  • Continued weak housing data, with some (early) bottoming signs.
  • Ebbing consumer confidence,
  • Weekly unemployment claims better than expected,
  • Friday’s PCE report showed inflation remains anchored and a fading consumer. 

Add it all up, mix in a little generalized anxiety, and mortgage rates closed out the week unchanged from where they started.

This Week: 
As for the economic calendar:  Monday’s Chicago Purchasing Managers Survey, Tuesday’s ISM Manufacturing index, Wednesday’s Factory orders report will give us a look at the manufacturing and wholesale components of the economy. Friday’s Employment Report will garner the most attention from the markets.  Negativity in any of these reports, but especially the employment report, should help mortgage rates.

Fed Chairman Bernanke testifies before the congressional joint economic committee on Wednesday, which also brings the ADP payroll report.  Information hungry traders trying to gauge the Fed and front-run Friday’s employment report may spark some volatility if there are any surprises here.

31_march08

For up to the minute news and views on interest rates and the factors that drive them, tune in to our twitter feed, BTM RateWatch.

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