The Mortgage Market This Week Tuesday, September 11, 2007

The Mortgage Market This Week
Monday, September 10, 2007 - The Bond Rate Monitor

Last week, when all the smoke cleared rates were pushed .125% to .25% lower as we predicted. This week's economic calendar is much lighter than last week, so will rates continue to drift lower or will they stall?

Last week, rates were pushed lower by the weak Jobs Report. The loss of 4,000 jobs was in sharp contrast to the anticipated creation of 110,000 jobs. This negative news almost ensured the Fed will drop rates at their next meeting on September 18th. The only question remains - Will the Fed cut rates by 25 or 50 bps?

The week ahead is shaping up much like last week, rates are likely to move sideways until Friday's Retail Sales Report. A number significantly below the expected would likely push rates down further.

The bottom line: Expect rates to move sideways in anticipation of Friday's Retail Sales report