Mortgage Rate and Market Recap for the Week of November 9th -16th, 2008

You Know Retail is Bad When….

When a retail store decides to shut down 150 stores before Christmas.  The store was Circuit City.  Circuit City also filed for Chapter 11 Bankruptcy.  This news is sort of surprising.. but really, the extremely surprising piece is the timing.

Do you know why they call the day after Thanksgiving “Black Friday”?  It’s because most retailers operate at a loss all year until the day after Thanksgiving.  Only the day after, do retailers move into the black for the year.  THIS is why it’s extremely surprising that a retailer as big as Circuit City would actually close down 150 stores prior to the big day.

Things are definitely changing.  It’s time for big companies to hunker down.

Are YOU Still Employed?

Seriously.  Statistics reflect the highest unemployment we’ve seen since 2001.  I’m confident we still haven’t seen the worst of it.

The reason I ask about you still having your job is because I received THREE e-mails this past week from connections asking for help on their job search.  Now, I’m happy to help.  My point is that it’s not only the national figures that are increasing.  In Iowa, we’re seeing unemployment becoming an issue.

I know it’s off topic of the post, but it’s more important than ever to create that emergency cash fund.  It gives you an opportunity to better prepare yourself for life’s little surprises.

Specifically, What Did Those Reports Say?

Each week, I put up an economic calendar of news coming out that following week.   Here’s the what actually happened with those reports last week:

What Impacts Mortgage Rates?

If you’re looking to purchase or refinance a home, it’s important to know what moves mortgage rates.  There are normally two major things that impact the direction:

1. Economic News.  (Like the calendar above).
2. International News. (major events, pending legislation, war related news, etc).
3. Stock Market. (Money flows from equities (stocks) to bonds when it seeks shelter).

What Are Rates Based On?

It’s been mentioned before, but as a common reminder – mortgage rates are only based on one thing. Mortgage Backed Securities (MBS).  The only way you have access to these is through live bond quotes.

Looking For Mortgage Rates?

If you’re looking for specifically what mortgage rates are doing, I’d be happy to help with a custom rate quote.  Each scenario is different (there are 27 different factors a mortgage rate is determined by).  If you or someone you currently know are looking for a mortgage, I’m here to help!

Information without obligation.  That’s my policy.  If you like what you hear, my team would love to help!

Tagged as: economic report, Inflation, Iowa, Mortgage Rates, Quote, Unemployment