Pleasanton Mortgage Markets Decline- First time in 5 weeks; Whats Ahead

Pleasanton Mortgage Markets Decline- First time in 5 weeks; Whats Ahead

Greece default concernsMortgage markets worsened in Pleasanton, Dublin CA and the Bay Area overall last week for the first time in 5 weeks.

The Beauty in Greece ends there

Better-than-anticipated economic data plus dwindling concerns for Greece’s sovereign debt combined to a spark a bond sell-off. Remember when money moves into stocks and out of bonds mortgage markets worsen. Conforming mortgage rates moved higher in the Bay Area as a result.

Rate shoppers were hit especially hard last Tuesday.

At Monday’s close, conventional fixed- and adjustable-rate mortgages were posting their lowest levels of 2011, but by Tuesday’s market close, rates had climbed as much as 0.250 percent across the board. In some cases, more.

The spike highlights how quickly mortgage rates can change in a recovering economy causing something like whiplash.  Floating interest rates for your purchase or refinance can be costly. “Floating” refers to an interest rate that is NOT locked with a bank.

This week, mortgage rates figure to be equally volatile. There’s a large set of market-changing data planned for release, and several Fed members have planned public appearances, including a 9:00 AM ET, Monday morning kickoff from Fed Chairman Bernanke.

  • Monday : Bernanke speech; Homebuilder Confidence Survey
  • Tuesday : Housing Starts; Building Permits
  • Wednesday : FOMC Minutes
  • Thursday : Existing Home Sales

The Jobs Number. Risk vs. Reward

In addition, Thursday brings a second rate shopper-risk.

The Initial Jobless Claims will be released at 8:30 AM ET and it will be closely watched by Wall Street. Initial claims are sharply higher since the end of April and investors believe the jobs market is key in a sustained economic recovery. If the data shows that initial claims receded, mortgage rates are expected to rise in response.

Interest Rates are low. The risks of rates jumping at any given point this week are HIGH. I love to work with readers that find my information on the Mortgage and Housing Market helpful in your decision making process. As a Mortgage Planner at Vintage Mortgage Group in Pleasanton I am in a unique position to help you capitalize at any point in the market. Contact me below today to help you with your purchase or refinance.

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