The Phoenix Real Estate Advisor

This morning the Pending Home Sales Report (Click for more details) blew away all expectations.  The experts were banking on the report indicating a -1% drop in activity when in fact the report showed a 6.3% increase!  This report is a leading indicator for existing home sales and can serve as a strong economic indicator.  Mortgage interest rates are continuing their battle with inflation and are trying to recover some losses from this morning.  As the wise turtle in Kung Fu Panda said, there is no bad news, just news.  With that in mind we need to focus on the news that will be coming out this afternoon.  Ben Bernanke is set to speak on the hottest topic in the market right now - INFLATION.  He is speaking at the Boston Fed conference tonight at 5:15pm Arizona time. 

His comments will certainly have an effect on mortgage interest rates.  If he has a worrisome tone, we can expect mortgage rates to lose some ground.  If Mr. Bernanke downplays the current risks of inflation, mortgage rates will respond favorably.  I will be sure to keep you posted.