Mortgage Rates Start Week at Record Lows, June 14, 2010

Mortgage Rates Start Week at Record Lows, June 14, 2010

Mortgage Rate Trend Direction      Up

Economic Reports/Rate Impact     No Economic Reports Released Today

Key News                                    Quiet Day

Summary

Today we begin a new week at record lows for mortgage rates.  Unfortunately, it appears that rates are likely headed up when lenders release their initial pricing for the day between 9:30 AM EDT and 10:00 AM EDT.  Strong overnight stock market performance in Asia, coupled with strong stock market performance in Europe and early success in the US, have pushed mortgage-backed security prices down in early trading.

Impact of economic data released today

While there are no economic reports being released today that  are market movers, the week ahead will be swayed by a couple of key reports.  On Wednesday and Thursday the Producer Price Index (PPI) and the Consumer Price Index (CPI) reports will be released.  These reports are measures of inflation in prices.  Inflation is a sign of economic growth and is a key ingredient in higher mortgage rates.  Also this week we begin to see earnings reports from US companies.  FedEx reports its earnings on Wednesday and the company’s results are considered an important gauge of economic activity (the more packages shipped, the better the economy).

Impact of international or political events

The European debt and currency crisis appears calm to start the week.  However news or comments on these issues is still a potential mover of mortgage rates this week.  Information that suggests European countries won’t be able to meet their debt obligations, or are unwilling to assist their fellow European Union members to restructure their debt, could bring mortgage rates down.  On the contrary, continued growth in Asian economies is likely to be a positive influence on our stock market (bad for mortgage rates).