Home Mortgage Interest Rates Remain Favorable.

The abundance of fundamental economic data coming out next week provides a good opportunity for mortgage rates to improve.  If the data shows weakness in the economy with little or no inflationary pressures, then it is possible for mortgage bonds to rally resulting in mortgage interest rate decreases.  However, if the data shows that the economy is rebounding or any significant signs of inflation, mortgage bonds may fall pushing mortgage interest rates higher. 

Bernanke's speech on Thursday signaled a willingness to cut interest rates sharply.  When you look at the stock market today and that the downside risks are higher than the upside potential there, you see that that will make treasuries and mortgages attractive to investors. 

For the week, interest rates on govenment and conventional loans fell by about 1/8 of a discount point.  Mortgage interest rates remain favorable.  Now is a great time to avoid the uncertainty surrounding continued market volatility.  Let's see what Monday brings for rates.  Tueday, Wednesday, and Thursday may prove to be volitale with all the data releases on the calender.