Weekly Preview 2/27/2012

Forwarded exclusively by:	Jeff Eisenberg Southern Oaks Mortgage, Inc. Office: 661-964-2600 Email: jeff@somloans.com website: www.somloans.com
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.