Meanwhile, the same type of news that drove rates lower Monday through Thursday also contributed to rates rising Friday — revised projections for the U.S. economy.

Early in the week, “bad” news piled on which, in turn, lowered expectations for the economy and pushed mortgage rates down:

• Existing Home Sales dropped 27% from June
• Single-Family New Home Sales dropped 12% from June
• Purchases of “big ticket” items plunged

Then, on Friday, two events revised the market’s expectations back higher:

• Q2 GDP was revised lower, but not as low as had been expected
• Fed Chairman Ben Bernanke said the economy will keep expanding through the end of the year and into 2011

When Chairman Bernanke talks, markets listen. His comments about the U.S. economy helped fuel that late-Friday surge in mortgage rates last week.

This week, the momentum could continue — depending on the data.

There’s a lot for markets to digest this week including key inflation figures from the government; home value data from Case-Shiller; Fed Minutes from the Federal Reserve; and, the always-important jobs report due Friday.

Since April, mortgage rates have been on a downward trajectory and that may continue this week.  Or, it may not. If you own a home and haven’t talked to your loan officer about a refinance, now is as good a time as any — rates are at historic lows and could rebound at any time.

Last June, mortgage rates rose 1.125% in 10 days. Under the right circumstances, it could happen again.

This may be one of the most important speeches Mr. Bernanke has ever given because the Fed has been criticized for lacking leadership and vision during these very tough times. The markets will be looking and hoping for a CLEAR, UNIFIED plan to help the economy get back on it’s feet.

The contents of the speech are GUARANTEED to move the markets, so if you like what you see rate-wise I suggest you LOCK IN now. Gamblers take note!

Call Todd Abelson & Tyler Ford at Sunstreet Mortgage in Tucson, AZ for all your mortgage needs (520) 331-LEND

New York Fed purchases $8 billion net ($8.3 billion gross) in agency mortgage-backed securities

There might be, oh, $1.47 left “in the kitty” for next week? Actually, there’s about $6 billion left which will make minimal impact in keeping rates low.

Next stop for rates – UP!

Call Todd Abelson and Tyler Ford at 520-331-LEND with Sunstreet Mortgage in Tucson, Arizona for all your Mortgage needs!

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