Realtor, Tennis Player, Titans & Vols Fan, Nashvillian… Live! Work! Play! in Middle Tennessee

Market Comment for Week of February 28, 2011…

leave a comment »

MARKET COMMENT   Mortgage bond prices rose last week helping mortgage interest rates fall. Turmoil in many of the oil producing countries sent oil prices skyrocketing higher. Normally rising energy prices cause inflation fears but we are not in normal times. Rising energy prices ignited concerns about the global economic recovery and sent a wave of buying into US debt instruments. Data was mixed. Weekly jobless claims and new home sales were lower than expected while consumer confidence and consumer sentiment data were higher than expected. The Treasury auctions generally went well and did not move the market much. Mortgage bonds ended the week positive by a favorable 7/8 of a discount point. 

PCE core inflation data leads the wave of significant data this week and the employment report will be the headline release Friday morning. 


  • Personal Income and Outlays; Feb. 28; Consensus Estimate Up 0.3%, Up 0.4%; Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
  • PCE Core Inflation; Feb. 28; Consensus Estimate Up 0.1%; Important. A measure of price increases for all domestic personal consumption. Weakness may help rates improve.
  • ISM Index; March 1; Consensus Estimate 60; Important. A measure of manufacturer sentiment. Weakness may lead to lower mortgage rates.
  • ADP Employment; March 2; Consensus Estimate 155k; Important. An indication of employment. Weakness may bring lower rates.
  • Fed “Beige Book”; March 2; Important. This Fed report details current economic conditions across the US. Signs of weakness may lead to lower rates.
  • Weekly Jobless Claims; March 3; Consensus Estimate 390k; Important. An indication of employment. Higher claims may result in lower rates.
  • Revised Q4 Productivity; March 3; Consensus Estimate Up 2.3%; Important. A measure of output per hour. Improvement may lead to lower mortgage rates.
  • Employment Friday; March 4; Consensus Estimate Unempl. 9.1%, Payrolls 190k; Very important. An increase in unemployment or weaker payrolls may bring lower rates.
  • Factory Orders; March 4; Consensus Estimate Up 2.1%; Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.

FED “BEIGE BOOK”   The Fed “Beige Book” is a summary of economic conditions from each of the 12 Federal Reserve regional districts. The release takes place eight times a year approximately two weeks ahead of each of the Federal Open Market Committee meetings. The report is used at the FOMC meetings, which tends to be one of the most influential events in the market. 

Market participants are continually attempting to determine what FOMC interest rate policy will be ahead of the next meeting. Any deviation from expectations usually results in extreme short-term market volatility. The timing of the “Beige Book” provides analysts a valuable look at one of the many factors the FOMC considers in setting interest rate policy. If the “Beige Book” shows signs of inflationary pressures, the Fed’s ability to keep rates lower may be somewhat restricted. However, if the report shows signs of difficulties, the Fed may keep rates low to stimulate the economy. Be cautious heading into this release. 

Source: Todd Kabel, F&M Mortgage; Blog distribution provided by Kenneth Bargers and Bargers Solutions residential real estate services located in Nashville, Tennessee


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


Ad, Sales & Marketing.

Rachel Being Chatty

Now featuring 15% more sarcasm.


The Casual Way to Discuss Movies

The Ninth Life

It's time to be inspired, become encouraged, and get uplifted!


The Casual Way to Discuss Movies

The Shameful Sheep

shit storms, shame, and stories that make you cringe

Autoindigo Blog

Fresh news about automotive world. Cars overviews written by experts, pros and cons, features, performance, safety, interior and driving.

Little Fears

Tales of whimsy, humor and courgettes

VR, AR, 3D and Video Glasses Reviews

Woodstock Business Welcome

Welcome Wagon Canada

Blookup Blog

Turn and print all your digital contents, blogs and social networks into amazing real paper books on


Graphic Designer


Sabbles woz 'ere


A town everyone hates, yet no one leaves...

Attila Ovari

Loving Life and Inspiring Others

Augusta Littleton

Nonprofits and Charities

The Home Buyer Class Blog

What to know when buying a home

The Contractor's Cabinet

A Blog On Construction & More


Love, Travel Lifestyle and Destinations


My journey - The good, bad and the ugly


"A Blog worth reading "

john pavlovitz

Stuff That Needs To Be Said

Smart Discount Shop

Discover all the creative and ingenious ways to save money !


4 out of 5 dentists recommend this site


A great site

Vonj Productions

Bringing you love through spirit!

The Dystopian Nation of City-State

A cruel, futuristic vision created by science fiction authors James Courtney and Kaisy Wilkerson-Mills. ©2013-2016. All Rights Reserved. All writings available through Amazon.

Bubba Pigg

South' s Leading Anti- Intellectual: Wealthy in Common Sense and the Wisdom of Selfishness

@TheTexasBroker Blog

Real Estate Sales Houston Texas

The Travelling Pantry

Adventurous, Honest and Wholesome

Top 10 of Anything and Everything!!!

Animals, Gift Ideas, Travel, Books, Recycling Ideas and Many, Many More



William the butler

Serving drinks since 1985


This site is the bee's knees

Plutonium™ Paint

Ultra Supreme Professional Grade Aerosol Paint

Covered in Beer

by Thomas Cochran, Known Moron

Natalie Breuer

Natalie. Writer. Photographer. Etc.

Post it Notes from my Idiot Boss

delivered directly to my computer monitor on an all too regular basis...

Late Blooming Entrepreneurs

Making it big in business after age 40