Mortgage Rates Improve on Global Concerns
Mortgage rates improve on global concerns this week. One primary long-term concern for mortgage investors is that
the enormous level of stimulus intended to boost the economy will lead to higher
inflation. Inflation erodes the value of
fixed income investments, so future
inflation expectations are a major determinant of bond values, including
mortgage-backed securities (MBS). Inflation has not been a factor in the
short-term, however, as virtually all of the data in recent months has shown it
to be low. This week, the Consumer Price Index (CPI), the most widely watched
inflation indicator, showed that core inflation rose only 1.8% from one year
ago. The Fed's comfort zone is for core inflation to rise at a 1.0% to 2.0%
annual rate, and Fed forecasts are for low core inflation this year. Mortgage
investors will be watching these levels closely, and any surprises down the road
could push mortgage rates higher.
Week Ahead
It will be a light week for economic data next week. The
biggest report will be Thursday's Retail Sales data. Retail Sales account for
about 70% of economic activity. The Trade Balance will come out on Wednesday,
and Consumer Sentiment will be released on Friday. There will be Treasury
auctions on Tuesday, Wednesday, and Thursday.
Also this week:
- The Unemployment Rate dropped to the lowest level since
August
- December Pending Home Sales, a leading indicator, rose
1.0%
- The Treasury will auction $81 billion in 3-yr, 10-yr,
and 30-yrs next week
- The Fed purchased $12 billion in agency MBS during the
week ending 2/3
Also notable this week is the continued expansion and growth
of Integrity Mortgage Group throughout this market rebound. Integrity has added
two
incredible mortgage professionals to it's arsenal to handle all of your
mortgage needs. Tanya Bridgers-Zoppi and Kelli Bennett
have joined the Integrity team in the Southern Pines office. Tanya accepted the
position of Branch Manager and brings over 9 years experience in the mortgage
industry. Tanya has a vast knowledge of all mortgage programs and was
distinguished as Rookie of the Year from the North Carolina Association of
Mortgage Professionals in 2001. Kelli fills the position of Senior Loan Officer
and brings over 10 years experience in the industry with a specialty in VA, FHA
and USDA loans. Kelli is active in the community and is an
affiliate member of the Pinehurst-Southern Pines Association of Realtors
and was distinguished as Team Player of the Year from the North Carolina
Association of Mortgage Professionals in 2006.
Integrity Mortgage Group is a national full service mortgage
bank with all government approvals including Direct Endorsement to FHA, VA
Automatic and USDA. Being in control of the entire process from originating to
funding, Tanya and Kelli can deliver the upmost in customer service and
reliability. Give them a call today at 692-8874 and let them show you the
difference they can make for you and your clients.
Kelly Wolfe
is our featured
locals mortgage professional with
Integrity Mortgage Group.
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