Last week we learned that the US employment outlook continues to look even bleaker than we’d feared. However, despite the bad news, there were a few signs of life regarding the economy here in Winter Haven, Florida and across the nation.
However, the pulse of our economy remains lower than we’d like, and in the end, the few spikes we saw in the economy weren’t enough to reverse the upward trend we’re seeing in mortgage rates.
Continuing a four-week run, mortgage rates increased, if only by a little bit.
Without a doubt, the fact that our economy has lost 2.5 million jobs since Labor Day took center stage last week. Oddly enough, this this fact has us looking at two landmark events that may move us closer toward a market recovery in the days ahead.
- Today, the Senate is expected to vote on an $820 billion stimulus package
- Tuesday, Treasury Secretary Geithner is expected to outline a bank recovery program
Adding heat to the fire, some economists argue that Americans are transforming from spenders to savers, and in the absence of consumer spending, an economy is hard-pressed to expand.
The point? Simple.
Rising unemployment is putting pressure on Capitol Hill to act, and the folks on Wall Street think the final government plan will be good for business. This last fact explains why the stock market climbed 2 percent last Friday just hours after the worst jobs report in 34 years. Gotta love traders, right? They sure area “glass half full” lot!
Image via Wikipedia
Now, what all of this means for mortgage rates is a little less clear…
Without question, mortgage rates will be most impacted by news out of Washington. In addition to the Stimulus Package (read by some as “Spending Bill”) vote and Geithner’s plan for the U.S. banks, Fed Chairman Ben Bernanke will testify Tuesday in front of the House Financial Services Committee.
The activity today and tomorrow will keep mortgage bond traders busy. Whatever the final outcome, Winter Haven homebuyers and those wishing to refinance will see a lot of mortgage rate volatility this week.
Unfortunately, we can’t know if rates will be moving up or down. So, if you see a rate that fits your budget, call me today at 863-604-3019 or Apply Online so we can lock it in. If rates rise, they’re expected to rise quickly.
(Graph image courtesy: CNN Money)
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I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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