Weekly Mortgage Market Overview: 6/4/12

By June 4, 2012Uncategorized

This week after a huge drop in interest rates last week, this week should see some consolidation. The stock market and the bond markets are both technically over-extended. That said, we still don’t expect interest rates will increase much even if there is some reversal this week. The overall trend is remarkably bullish on increasing US economic weakness and the never-ending debt problems in Europe. Spain has serious problems in its banking sector and unemployment is increasing; Greece will; hold elections on the 17th to determine whether Greek citizens want to stay in the Union or leave it. A Greek exit of the EU would generate additional fears that Ireland and Portugal might follow. Presently there is little belief one way or the other that Europe will its debt and deepening economic crisis, leaving the US bond market as a place to park money.


The Fed Beige Book will be released on Wednesday; there isn’t much this week on the data; the May ISM services sector index is out tomorrow and weekly jobless claims on Thursday are the only key data this week.


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