Loan Rates Rise For The Week

Last week saw about a 1/8th percent increase in mortgage rates. Stronger than anticipated financial news as well as continued strength in the stock market were the major forces driving this change. Additionally, it appears that foreign investors are beginning to lose interest in U.S. bonds. This is also leading to deteriorating pricing in the market.

This week sees a number of major economic news releases. Most importantly, this is the week that Fed Chairman Alan Greenspan steps down after over 18 years at the helm. Ben Bernanke will take over the post on Tuesday. Greenspan will deliver his final Fed Policy Statement on Tuesday, and everyone predicts that it will be yet another 1/4 % interest rate hike. Furthermore, word on the street is that Bernanke will likely follow with one more rate hike in late March before finally returning to a neutral policy.

This weeks releases include:
Mon. January 30 08:30 Personal Income
Mon. January 30 08:30 Personal Spending
Tue. January 31 08:30 Employment Cost Index
Tue. January 31 10:00 Chicago PMI
Tue. January 31 10:00 Consumer Confidence
Tue. January 31 02:15 FOMC Meeting
Wed. February 01 10:30 Crude Inventories
Wed. February 01 10:00 ISM Index
Thu. February 02 08:30 Jobless Claims (Initial)
Fri. February 03 08:30 Non-farm Payrolls
Fri. February 03 08:30 Unemployment Rate
Fri. February 03 08:30 Hourly Earnings Jan
Fri. February 03 08:30 Average Work Week
Fri. February 03 09:45 Consumer Sentiment Index (UoM)
Fri. February 03 10:00 ISM Services Index