Phoenix Mortgage Broker – Mortgage Interest Rate Week In Review
FHA, VA, and USDA home loan interest rates had a great week!  Home purchase activity has substantially picked up in the Phoenix Real estate market prior to the expiration of the $8,000 tax credit.
Last Week; a volatile but good week for the rate markets. Mortgage rates fell to their lowest levels since last April. Treasuries continue in demand from foreign central banks and domestic investors; likely some of the buying is associated with new concerns that the economy isn’t on the fast track of recovery as markets were expecting recently. Economic data flowing last week were generally worse than estimates, shaking the confidence that the V shaped economic bottom may be more a W shaped recovery. Job losses in Sept were a third higher than markets were expecting, increasing the fears that unemployment is not close to bottoming. With inflation fears waning and increasing uncertainty interest rates have declined 50 basis points in the past two weeks.

This Week; Treasury will borrow another $71B of notes and bonds to fund the growing budget deficit. The bond and mortgage markets will likely be a little soft on Monday and Tuesday; pending the demand for the Treasury auctions and the action in the equity markets. Interest rate markets will likely increase in interday volatility. Confidence for a quick economic recovery has been shaken a little but most analysts expect investors will step up to buy securities on any major dip in the market. There a just three first tier economic releases this week; Monday the Sept ISM services sector report, Wednesday the August consumer credit report, consumer credit declined $21.5B in July, August is expected to show another decline of $9.5B, on Thursday weekly jobless claims are expected at 541K, down frm 551K last week.
Call me for updates on FHA,VA and USDA loans!
Call my office at (602) 291-4362

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