East Bay Mortgage & Market Update for May 6th 2011

East Bay Mortgage & Market Update for May 6th 2011

Economic News:  Wednesday’s ADP Employment Report for April was a little weaker than expected with respect to job growth in the private sector. The Institute for Supply Management (ISM) Non-Manufacturing Index was reported at 52.8 versus the consensus figure of 57. Although the data was weaker than expected a reading above 50 indicates month-to-month growth. Initial Jobless Claims, which were expected to be 410,000, rose by 474,000. The four week moving average is also up 10% from month ago levels at 431,250. Lastly, today’s Employment Situation beat expectations showing an increase of 244,000 jobs for April and the unemployment rate rose to 9.0% from 8.8%.

Mortgage Markets:  The Treasury and Mortgage Backed Securities, after losing ground to start the day, have rallied back. The 10 Year Note is currently trading at 3.157%. Mortgage rates are finishing the week near their best levels of 2011 which will assist those who did not take advantage of rates toward the end of last year.

Next Week’s Reports:  Wednesday:  International Trade  Thursday:  Producer Price Index, Retail Sales & Jobless Claims  Friday:  Consumer Price Index & Consumer Sentiment

While I do not originate loans I make it a habit to keep abreast of mortgage & market conditions. If you are thinking of purchasing a home the first step is to meet with a mortgage professional. I will gladly provide several top notch Bay Area advisers for review if you are in need of a referral.

Stay tuned for the Next East Bay Mortgage & Market Update