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Southern Oaks Mortgage, Inc.
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.