Mortgage rates had a rough week as the markets shrugged off a dismal employment report to push rates higher. Improving economic data, fear of inflation and fear of the oncoming supply of new bonds were the prime drivers, and rates closed Friday at least .25 – .375% higher than they began the week – a fact not noted by the usual weekly summaries, I might add.
As I type this, the mortgage market has started just where it left off, marking what promises to be a sixth straight day of up-trending rates.
And there’s not much in this week’s economic calendar that might stop the bleeding – just a smattering of second tier reports (consumer credit, weekly jobless claims anyone?) against a backdrop of $72 billion in new treasury bonds that will be sold in a three day acution, which is likely to put further upward pressure on rates.
So, while anything can happen, this is not setting up to be a positive week in the mortgage markets. Your best hope is that a big dose of Fedspeak (Bernanke, Lacker, Fisher, Sack all have gigs this week) calms the markets inflationary fears and rates can retreat a bit.
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