Mortgage Market and Rate Forecast – Week of September 15th

by Tyler Osby on September 14, 2008

Mortgage Market and Rate Watch

Mortgage Market and Rate Watch For Week of September 15th, 2008

What To Watch This Week?

Inflation.  It’s been on the mind of investors for quite some time.  If inflation gets outside of investors ‘comfort zone’, rates WILL push higher.  Let me explain:

Lets say you’re looking to put your money into a fixed rate of return investment.  That means if you give me your money, you’ll consistently get the same amount of money each month.   Lets say that if you invest $1,000 and I’ll give you $60 per month.  On board so far?

Well, today you know that your $60 will get you a certain amount of goods/services.  What if you knew that inflation was going to cause the cost of those goods and services to increase?   I can only assume you’d want a higher rate of return on your investment.  Right?   Well, that’s the short story of why inflation impacts mortgage rates, and why we’ll be following these reports this week:

  1. Core Consumer Price Index – Tuesday – The Core Consumer Price Index is the economic report that says how much ‘stuff’ consumers are able to buy with the same amount of cash (to be relevant to the example above).  If the news says that inflation is increasing – count on mortgage rates worsening, plain and simple.
  2. Philadelphia Fed Index – Thursday – This report indicates the manufacturing activity out in the Philadelphia area.  It’s a great indicator to see the trend in the economy in that particular sector.  This is on target with national figures about 70% of the time.  Traders love a cheat sheet… The Philly Fed Index is one of them.

You Can Stay Updated!

I’ll be following things as they happen with live mortgage bond quotes and do what I can to keep everyone informed through Twitter. My clients always get the advice first, so I’ll try to filter though as quickly as I can.

Here’s this week’s economic calendar:

Weekly Economic Calendar for Week of September 15th

As a Consumer, How Do You Keep Posted on the News?

I’ll do my best to keep you posted throughout the week via Twitter. If you’re interested in finding out more about what effects mortgage rates and which direction they’re headed, feel free to follow me!

Work With Mortgage Professionals In The Advice Business

It’s important to recognize that advice is extremely valuable when looking for a mortgage. The right advice can literally save you thousands of dollars, while the wrong advice can cost you the same.  Some mortgage professionals really don’t know what mortgage rates are based on, period.  If you want to get the best deal, having a professional that can give you that type of advice is extremely important.

Why Am I Posting A Calendar?

I provide this weekly news update because too often when we’re shopping around, we ask the wrong questions. The first thing you’ve got to have your antenna up on is economic news if you want to have any idea what direction rates are moving.

So You Say, What Are Mortgage Rates Currently?

I get this question all too often. If I’m being fair.. and honest (which is my policy). I would be doing you a huge disservice to just quote a rate.

Truth be told, there are literally 27 different factors that go into a custom rate quote. There are also thousands of programs (constantly changing as well). It’s extremely important that you are educated on what is available and most importantly what is the best mortgage plan for you to personally implement.

It’s natural to have a list of questions. I’d love to help work through them with you and educate you on what you need to know about the mortgage process. I can help with everything from how to pre-qualified to what to do after closing (where I will continue working for you)!

It’s what we do, and it would be my honor to add you to our list of raving fan clients. If you’re currently looking for a mortgage loan or know someone that might have questions about one, please have them contact me. I’d be happy to assist them. It’s literally what I love doing! I promise to take great care.

Original Photo Kudos.

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