Mortgage Rate Movements 5/21/04 - 5/17/04

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DATE

Mortgage Rates Information

5/21/04

10:23 am - the Ten Year T-bill is at 4.68 and this in turn is causing the mortgage rate market to adjust lower. Although the mornings economic data was good and the market is up, it must assumed that traders expect no change next month in the lending rate. With higher gas prices and no showing of them being lower we can only assume this is what is driving the mortgage rates to a lower section.

5/20/04

10:00 am - Interesting items occurred in the morning. Most gains in stocks were lost by evening yesterday. Jobless claims report came in and oddly it was up, by 12,000. This was really not expected after all the talk of a recovering economy. This usually means that mortgage rate hopefuls believe it will cause a lowering in rates. Why? well if jobless claims are up that means a slower growth and no need for rates to be raised by the feds. It is important to see what the markets play out today with the early morning bad news.

5/19/04

Once again bond pricing is up, most likely because major companies have reported expected consumers sales will be up. The Dow is showing gains on some good corporate mergers info. The yen has shown increases from the dollar. This increases the concerns that inflation is showing up in the market. The mortgage rates will reflect this monetary movement. As inflationary items show up in the market the fear of interest rate increases will occur. There for the mortgage rate will adjust upwards.

5/18/04

 Market conditions of the Dow Jones and nasdaq are up. Stocks are good for major companies as the earnings come in. Greenspan will be Nominated again as the fed chairman. Although this will be his fifth term and his final term will run out in 2006 and he cannot be nominated again. The ten year treasury bond is up to 4.73 - 3:00pm a minor increase from yesterday's pricing. This will most likely will not reflect well for mortgage rates but there has been no major movement yet. The market is still fearful of the oil prices and their slowing effect. So mortgage rate adjustments have not shown yet but may start soon depending on the remaining trading week.

5/17/04

 Interesting items affecting the rate market. Interest rates have been moving up steadily since a minor economic up swing was stated by the Fed chairman. This gave bond traders the idea that rates would be raised by the feds. Today, Increase in oil prices seem to be negatively affecting the long term growth of the economy. This in turns reduces the need for the federal reserve to raise rates in turn to slow the market. The gas price increase will do its part alone to slow the economy. There for bond traders appear to buying the bond with a lower yield and the mortgage rates have reflected with a minor reduction.

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