Are Raleigh Mortgage Rates on the Move – The Weekly Kevin Martini – predications, expectation & guidance on Raleigh Mortgage Rates

Are Raleigh Mortgage Rates on the Move – The Weekly Kevin Martini – predications, expectation & guidance on Raleigh Mortgage Rates

What the heck happened to Raleigh Mortgage Rates – WAIT…I KNOW –Ben Bernanke spoke & there was dancing in the streets afterwards.

Last week, Fed Chairman Ben Bernanke provided testimony in front of the House Financial Services Committee…there was no breaking news on his assessment of the economy, labor market & housing market. That being said, the biggest Kevin Martini takeaway was that he made no mention of another round of Bond buying or Quantitative Easing (QE3).

A ton were disappointed to learn there was not mention of QE3…virtually all the markets as both Bonds and Stocks closed lower the day Bernanke spoke. So here’s an important question to ask: Is the economy strong enough to keep the Fed from pumping any more money (QE3) into the economy? While the economy has improved on many fronts, it is still fragile & it would not take much for growth to slow…meaning more Fed intervention would be needed. For instance, high oil prices, a worsening situation in Europe or China and escalating concerns in Iran could all cause our economy to slow.

One thing is for sure – the incoming economic data over the next couple weeks and months will be very important to follow for signs of continued economic improvement or potential slowing. One important factor to note from last week: inflation, as measured by the Core Personal Consumption Expenditure (PCE), rose by 0.2% in January, while the year-over-year Core PCE climbed to 1.9% and just beneath the Fed’s upper target of 2%. Seeing inflation rise, even though the Fed continues to say it is moderating, is a concern. With Core PCE just beneath the Fed’s desired target, upcoming readings will play an important role in how long the Fed continues its accommodative policy and any chance of more easing, QE3.

The most important thing to take away is that Raleigh Mortgage Rates still remain near historic lows & now continues to be a great time to purchase or refinance a home.

Several important economic reports will be released this week & on Friday all eyes will be on the Jobs Report for February.

• The ISM Services Index will be released on Monday. Did you know that the service sector makes up about 70% of the U.S. job market!
• The ADP Employment Report will be delivered on Wednesday.
• Another important report this week will be the Productivity Report on Wednesday. This report measures the number of hours it takes to produce a good in a factory.
• Initial Jobless Claims will be released on Thursday. The number of Americans claiming first-time benefits has dropped in the past few months.
• Last but not least is the Mac Daddy of reports on Friday. Literally the world will be closely watching the monthly official Jobs Report. January’s report showed that 243,000 new jobs were created. This report could impact Raleigh Mortgage Rates.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and Raleigh Mortgage Rates improve, while strong economic news normally has the opposite result.