The Mortgage Minute

More Gains for Construction:
Construction starts in the United States are expected to rise 11% in 2010 according to the McGraw-Hill construction forecast.

The report shows gains in the building of single-family homes, apartment buildings, highways, and bridges which will more than offset the decline in commercial and manufacturing construction.

The construction forecast indicated that our economy is expected to remain choppy but construction starts are expected to climb 11% to $466.2 billion, with single family housing coming in at $166.2 billion.

This is yet another report that points to some strength in the housing market in the near-term. The time to buy is now, before we see upward pressure in home prices.

What Happened to Rates Last Week?

We lost some significant pricing last week as mortgage backed securities gave up all of their gains from the past two weeks. Positive economic news puts pressure on mortgage rates and last week we had some strong results in Retail Sales, Initial Jobless Claims, Empire State Manufacturing Index, and Industrial Production.

What to watch out for this week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect mortgage rates. I will watch these reports closely for you and let you know if there are any big surprises.

I know you are busy and it is virtually impossible for you to keep track of what is going on in the economy. I monitor the trading of Mortgage Backed Securities; the only thing conventional and government mortgage rates are based upon. So, I know if there is going to be a trend reversal in mortgage rates.

Please call on me any time for an industry update.

Respectfully,

Brent
brent@mtg-specialists.com
(402) 991-5153