Mortgage Rate Forecast Week Of July 27, 2009

The Mortgage Market held its own today after the first of four historic Treasury auctions took place.  The U.S. Treasury‘s plan to sell its most weekly debt in history. Across four separate auctions, the government is selling $115 billion in notes.  If the notes are in low demand, bond prices will fall, pushing up rates.

There is a ton of economic data scheduled for release this week — at least one new data point per day, actually. Each could cause mortgage rates to rise or fall:

• Monday : New Home Sales
• Tuesday : Consumer Confidence
• Wednesday : The Fed’s Beige Book
• Thursday : Initial Jobless Claims
• Friday : Personal Consumption Expenditures

If the data points to a rosier outlook for the U.S. economy, expect that mortgage rates will rise.  If data looks weak, rates should fall.

This week in mortgage markets is among the most eventful we’ve seen all year.  Expect mortgage rates to be on the move.

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