CT Mortgage Rates Update November 2, 2009

Mortgage bond prices rose last week pushing CT mortgage rates lower. Rates spiked higher Monday morning as stocks surged and the Treasury auctions loomed. Fortunately, foreign demand for the notes was solid, helping to keep mortgage rates low. The stock markets remained volatile all week with the Dow Jones index swinging by triple digits both up and down.

For the week, interest rates improved by about 1/4 of a discount point.

The Fed meeting on Wednesday will be the most important event this week. Productivity and employment figures are likely to move the market.

LOOKING AHEAD

Economic Indicator	Release Date & Time	Consensus Estimate	Analysis
ISM Index	Monday, Nov. 2, 10:00 am, et	53.0	Important. A measure of manufacturer sentiment. Weakness may lead to lower mortgage rates.
Factory Orders	Tuesday, Nov. 3, 10:00 am, et	Up 1.0%	Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.
ADP Employment	Wednesday, Nov. 4, 8:30 am, et	Down 190k	Important. An indication of unemployment. A larger decrease in payrolls may bring lower rates.
Fed Meeting Adjourns	Wednesday, Nov. 4, 2:15 pm, et	No rate change	Important. Few expect the Fed to change rates, but some volatility may surround the adjournment of this meeting.
Preliminary Q3 Productivity	Thursday, Nov. 5, 8:30 am, et	Up 5.8%	Important. A measure of output per hour. Improvement may lead to lower mortgage rates.
Employment	Friday, Nov. 6, 8:30 am, et	Unemp. @ 9.9%, Payrolls -166k	Very important. An increase in unemployment or a large decrease in payrolls may bring lower rates.

Volatility Likely

The likeliness of CT mortgage rates being volatile this week is very high considering the abundance of important economic releases.

Each piece of data has the ability to cause volatility in the financial markets. Floating ahead of the data exposes a person to a tremendous amount of risk. It is possible for interest rates to improve if the data shows weakness in the economy with few price pressures. However, any surprises will likely be bad for mortgage interest rates.

Governmental actions in addition to the economic data continue to weigh upon the financial markets. We are really in uncharted territory here with the wobbly underpinnings of the economy. Credit remains tight, as lending has become more stringent. However, there still remain funds available. Real estate transactions continue to take place despite perceptions to the contrary.

The important thing to remember is that even the Treasury officials trying to shore the economy do not know exactly what the future holds. With this in mind, be cautious during these times of economic uncertainty and be ready to lock in the event interest rates start to spike higher.

For more news and information about CT mortgage rates, or CT homebuyer programs you can visit www.CHFAMortgageLoan.com, or call us directly at (800) 922-3210.