Monday, February 27, 2012

Weekly Preview 2/27/2012

Weekly Preview
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Jeff Eisenberg
Southern Oaks Mortgage, Inc.
Office: 661-964-2600
When the RIGHT loan matters!
Sunday, February 26, 2012
This week; a number of economic releases that will dominate markets.
 The Europe debt mess is presently dormant in the sense of nothing in
the way of market-driving news, the same as last week. Greece will get
 its money the will eventually default but for now markets have generally
   discounted Greece and Europe’s problems. The focus now in the bond
 and equity markets is the status and outlook for the US economy.
 Interest rate markets are wound tight as a spring. Based on the 10
 yr treasury, driver for mortgage markets, not much change in rates
 last week. Technically the 10 yr is presently losing its support at these
 levels but still holds well so far.

This week’s economic releases are significant for the outlook on
 the economy, thus the bond market. There are a number of key
 releases this week, most expected to have improved from last
 month.(see economic calendar). Ben Bernanke will be speaking
on Wednesday, other Fed officials have been talking about potential
 of another easing move from the Fed. There is little appetite for
 another round of MBS purchases or any other easing moves as
 long as the economic outlook continues to be strong; the Fed
   doesn’t need to add more to its balance sheet as long as the
 economy doesn’t roll over. Although the Friday is March 2nd
the employment report won’t be released until March 9th.
There is the potential for wider market movements this
 week compared to last week. Interest rates are vulnerable
 to selling if equity markets rally this week.


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