Mortgage Newsletter-June 27th, 2011 Dana Bain Premiere Mortgage 9784222311

Mortgage and Lending with Premiere Mortgage Services Inc. MLO 18693

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Newsletter-June 27th, 2011
Provided by
Dana Bain  &  Robin Dunbar Bain
Dana Bain
Premiere Mortgage Services
11 Malvern Hill Road
Sterling, MA 01564
Phone: (978) 422-2311
Fax: (978) 422-2313

Market Comment

Mortgage bond prices rose last week pushing mortgage interest rates lower. Bond trading remained volatile with large swings throughout the week. Trading was tied to news from Europe on the ongoing Greek debt crisis and stocks. The debt crisis in the Euro Zone will continue to drive trade for the foreseeable future. Federal Reserve Chairman, Ben Bernanke, acknowledged in his press conference that the economy had hit a "soft patch" and that the governing body expected to see unemployment remain "elevated" for years. Mortgage bonds ended the week better by about 1/2 of a discount point.

PCE core inflation data may result in mortgage interest rate volatility. If inflation exceeds estimates we could see a spike in mortgage interest rates. Tame inflation readings are always welcome.



Date & Time



PCE Core Inflation

Monday, June 27,
8:30 am, et

Up 0.1% Important. A measure of price increases for all domestic personal consumption. Weaker figure may help rates improve.
Personal Income and Outlays

Monday, June 27,
8:30 am, et

Up 0.1%,
Up 0.2%

Important. A measure of consumers' ability to spend. Weakness may lead to lower mortgage rates.
Consumer Confidence

Tuesday, June 28,
10:00 am, et

60.8 Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates.
Weekly Jobless Claims

Thursday, June 30,
8:30 am, et

412k Important. An indication of employment. Higher claims may result in lower rates.
U of Michigan Consumer Sentiment

Friday, July 1,
10:00 am, et

69.4 Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates.
Construction Spending

Friday, July 1,
10:00 am, et

Up 0.1% Low importance. An indication of economic strength. Weakness may lead to lower rates.
ISM Index

Friday, July 1,
10:00 am, et

55.2 Important. A measure of manufacturer sentiment. Weakness may lead to lower mortgage rates.

Consumer Sentiment

In the US the consumer is often seen as the driving force of the economy. A large percentage of the total economic output is for personal use. Analysts attempt to predict the future spending patterns of consumers to gauge economic activity.

The Michigan consumer sentiment index is one piece of data used to measure consumer attitudes. The index is derived from a telephone survey, which gathers information on consumer expectations of the overall economy. The preliminary report is released around the 10th of each month and then is revised throughout the remainder of the month. It is significant in that it provides a precursor into consumers' willingness to spend in the months ahead. However, many analysts point out that willingness to spend does not always convert to actual expenditures.

Despite economic uncertainty, liquidity issues, housing market weakness, and high energy costs, American consumers continue to spend. However, many analysts question whether consumers can continue to buoy the economy. Look for any variation from estimates to cause mortgage interest rate volatility. Signs of eroding consumer confidence could lead to improvements in mortgage interest rates. However, stronger than expected figures could spike rates higher.

Remember that mortgage interest rates remain historically favorable and are subject to change on a daily basis. 

MORTGAGE MARKET IN REVIEW Newsletter-June 27th, 2011
Dana Bain Premiere Mortgage Services Inc.  978-422-2311


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Michele Miller ~ REALTOR®, LMC, HSE, CHS, SRES, CMRS
ERA Key Realty~Worcester County Realty Group - Worcester, MA
'Helping You Make the Best Move"


Thank you again for your updates. It is very much appreciated. I do hope the consumer confidence improves but we need MORE jobs in order for that to happen.

Hope you have a safe and Happy 4th of July weekend!

Jun 30, 2011 12:42 AM #1
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