What’s Ahead For Danville, CA Mortgage Rates This Week : August 29, 2011

What’s Ahead For Danville, CA Mortgage Rates This Week : August 29, 2011

Net new jobs August 2009-July 2011Last week was another volatile week for mortgage rates. Wall Street alternately sought risk and shunned it, causing mortgage-backed bonds to rise and fall rapidly.

There was a lot to move markets, too, including banking concerns across Europe, inflation figures within the U.S., and a public speech by Fed Chairman Ben Bernanke.

Conforming rates across the Bay Area rose to their highest levels of the week Wednesday afternoon, then receded into the weekend. 30-year fixed rates remain above their all-time lows set 2 weeks ago. 5-year ARMs are at all-time lows.

This Week in Home Loan Rates

This week, mortgage rates figure to be equally jumpy. As well as a full slate of economic data, because of Labor Day, bond markets will be light on volume. When volume is light, pricing gets volatile.

The week’s calendar of data includes:

  • Monday : Pending Home Sales Index; Personal Income and Outlays
  • Tuesday : FOMC Minutes; Fed President Kocherlakota speaks
  • Wednesday : Factory Orders
  • Thursday : Jobless Claims; ISM Manufacturing Index
  • Friday : Non-Farm Payrolls

Of all the reports, though, it’s Friday’s Non-Farm Payrolls that might move mortgage markets the most.

News Moves the Market and Wall Street

Jobs are crucial to the ongoing economic recovery and, from Wall Street to Capitol Hill, it’s top of mind.

If the jobs report shows more jobs created than expected, or a positive forward trend, expect bond markets to fall, pushing mortgage rates up. On the other hand, if the jobs report is soft, mortgage rates may improve.

We can’t know what rates in Danville will do on any given day, so the best strategy for a shopper is to shop with purpose. Know what you want, and be ready to lock when you see it. If you wait too long, the rate will be gone.

Have a Plan for your Mortgage

If you’re floating a mortgage rate or still shopping for a home, consider locking your rate as soon as possible. Rates trended higher to close out last week and will be riding that momentum forward. 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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