Mortgage Backed Securities End this Week; Unemployment Report out Friday
March 29, 2010 - Last week saw mortgage rates again staying mostly flat with some mixed economic news. For the final quarter of 2009, the GDP was revised downward to 5.6% from the original estimate of 5.9%. The recent data reflects the Federal Reserve's desire to keep the economic recovery at a moderate pace.
In addition, a slip in February's new home sales was largely attributed to a series of snowstorms stretching from the Midwest to the Northeast. Dropping 2.2% for the month, sales were down 308,000, but still recorded as an overall improvement from previous quarters.
This week has some very important economic news for the markets to digest, including employment data, the ISM Manufacturing Index, and Consumer Confidence. With more signs that the recovery is slowing, every bit of data that reinforces that will help to hold mortgage rates from moving upward. This week marks the end of the Fed's program of buying mortgage backed securities; it's unsure whether or not this event will pass without much attention or if it will set mortgage rates on an upward trend for a little while. If this week brings a drop in unemployment and a positive increase in jobs, rates may be climbing in the near future.