The Coming Week in Mortgage Land

7 Day Mortgage Interest Rate lock or Float Advice: LOCK ASAP

The cost for a 4.00% rate based on Mortgage Backed Securities is down 0.03 point.

30 Day Mortgage Interest Rate Lock or Float Advice:  LOCK ASAP

• National Average for 30-Yr Fixed Mortgage Rate jumped to 4.51% on July 11.
• MBS (4%) Closed at 103.32, High: 103.39, Low: 103.06
• DJI Stocks closed at $15,488.41, Up $24.11, Change 1.095%
• Asian & European Stock Market Indexes changed -5.64%
• Crude Oil (WTI) Currently $104.62 - Change -1.78%
• Gold 1 Once - $1,283.01

This Week; there are a number of key economic releases but the major focus this week is Bernanke testifying in the House and Senate on the economy, employment and inflation. Likely he will field a lot of questions from politicians about what the Fed intends to do with its QEs and more grilling on the state of the economy and unemployment that refuses to subside. He goes before the House Financial Services Committee on Wednesday and then to the Senate's Banking Committee on Thursday. At this moment markets continue to lean towards the Fed beginning to taper as soon as Sept but Bernanke is keeping markets on edge by changing is tune frm one speech to another. 

Economic data this week includes June retail sales on Monday, June CPI, June reports on industrial production and factory use, and June housing starts and permits. The technical picture in the bond and mortgage markets remains bearish although last week both markets saw nice rebounds frm the week prior. We expect markets will trade in narrow ranges early this week ahead of Bernanke. Until the 10 yr note can close below 2.50% the outlook is still bearish. It isn't wise now to anticipate that interest rates will decline much. Maybe Bernanke can swing the outlook to a more positive outlook, but if that were to occur he would have to imply the Fed will not begin tapering until next year.