Cari Anderson's East Bay Mortgage Update for July 16th 2010
Economic News: Yesterday's Producer Price Index (PPI) came in lower than expected influenced by a drop in the food & energy prices. The PPI inflation fell .50% on top of a .30% drop we experienced in May. Weekly Jobless Claims fell 29,000 to 429,000 which is good news. On the other hand continuing claims rose by 247,000 to 4.681 million. Industrial Production results were at the high end of consensus but were a little muted. This mild slowdown comes on the heels of gains we have experienced over the past year. Today's Consumer Price Index (CPI) showed a third consecutive decline led mainly by lower energy costs and, taken with the PPI data, shows no inflation in the pipeline at this time. Finally, Consumer Sentiment came in well below expectations with a reading of 66.5 which is the lowest since March of 2009. The recent declines in Consumer Sentiment have been partially attributed to the effects of the gulf oil spill and we can only hope that the cap which has stopped the flow of oil will be a success.
Mortgage Markets: The yield on the 10 Year Note has broken back below the 3.00% level and is currently trading at 2.94%. In addition, the Mortgage Backed Securities are rallying on the weak economic data and we are seeing mortgage price changes for the better this morning. If you are in the process of purchasing or refinancing rates remain at terrific levels.
Next Week's Reports: Monday: Housing Market Index. Tuesday: Housing Starts. Thursday: Jobless Claims & Existing Home Sales.
Stay tuned for the Next East Bay Mortgage Update...
Comments(0)