Weekly Mortgage Rate Commentary

Last week was another frenzied week for financial markets. While the debate still rages over whether we are in, or are entering into, a recession, there was plenty of ammunition for both sides in the debate. Our first look at GDP for the 4th quarter of 2007 came in at a weaker-than-expected 0.6%. Consumer Confidence dropped again, and January appears to have started with a net loss of jobs in the US. On a more positive note, Orders for Durable Goods popped upward, and the ISM Manufacturing Index moved over 50, which indicates that manufacturing is expanding. The unemployment rate ticked down to 4.9%, and we all know that January's lost jobs could be revised into gains in next month's report. The Fed also knocked another '/2 point from both its interest rates, and continues to pursue other means of shoring up the credit markets and stimulating economic growth.

With little data due this week, we could see rates settling down and not moving as much. However, given current conditions, signs of a strengthening economy may push mortgage rates up quickly.