Confidence Springs Higher

Dated: 03/27/2014

Views: 1229


Since last Wednesday's Fed meeting, there has been little market moving news. The economic data released over the past week contained few surprises. One influence on U.S. mortgage rates resulted from a shift in expectations for European Central Bank (ECB) policy, which helped mortgage rates move a little lower this week.

While the Fed is cutting its bond purchases and providing guidance for raising the fed funds rate, the central banks in Europe and Japan remain on the opposite path. The Bank of Japan (BOJ) continues to provide massive amounts of monetary stimulus, with no indications of slowing. Low readings for inflation in the euro zone this week sparked rising expectations that the ECB will increase its monetary stimulus. In the global economy, stimulus from the BOJ and the ECB affects bond yields around the world, including U.S. mortgage-backed securities (MBS).
The housing data released over the past week reflected results for February which remained depressed by unusually severe winter weather. Both New and Existing Home Sales decreased a little from January and were well below last year's levels. As a potential sign that spring will see improving economic activity, Consumer Confidence, which is March data, jumped to the highest level since January 2008.
The next Employment Report, the most significant economic data each month, will be released on April 4. Before then, Pending Home Sales, Core PCE inflation and ISM Manufacturing will be of interest to investors. Outside the U.S., economic data from China and Europe will have the potential to influence U.S. mortgage rates. Investors also will be keeping an eye on the situation in Ukraine.

Consumer Confidence
Commentary provided by MBSQuoteline. For live MBS pricing visit www.mbsquoteline.com.

Want to Advertise on this Site?

Latest Blog Posts

What Is The Deal With Home Warranties

About a week ago, I walked into the house after a lonnnng day of showing property and negotiating inspections and what do I see glaring across the room laying ever so "out in the open" on the

Read More

Are You A Real Estate Do It Yourselfer

If you're anything like me (who am I kidding you guys are so much cooler) you're not afraid of a little "Do-it- Yourself" sweat equity.  Last year alone I learned how to change the breaks in my

Read More

HIGHER INCOME LIMITS FOR USDA LOAN

NEW INCOME LIMITSRural Development has announced as of today, 7/22/19, income limits for the Single Family Housing Guaranteed Loan Program have been updated.‍You can now make up to $114,650 in

Read More

5 Ways To Make Your AC Dollars Go Further

The aqua jeweled waters of the Caribbean pared with lush, jungle-like vegetation that seems to stretch along the beach forever greet you every single summer. It’s amazing, really, and you hope

Read More