East Bay Mortgage & Market Update for 8.19.2011
Economic News: The volatility continued for another week as the European Union financial concerns coupled with some reports that the United States economy could be slowing had interest rates moving lower again. Both Housing Starts and the Housing Market Index did not meet expectations and Existing Home Sales fell 3.5% in July while inventory crept up to 9.4 months. The Producer Price Index and Consumer Price Index showed some inflation in the pipeline due to higher food and energy costs. Jobless Claims, while rising on a weekly basis, saw the four week moving average decline 20,000 from month ago levels. Industrial Production handily beat consensus and was a nice positive which showed that not all news was bad news. Speaking of good news, anyone who is in the middle of a purchase or refinance is certainly benefiting from these great rates.
Mortgage Markets: Treasuries and Mortgage Backed Securities finished the week in good shape. The 10 Year Note closed trading at 2.068%.
Next Week’s Reports: Tuesday: New Home Sales Wednesday: Durable Goods Orders Thursday: Jobless Claims Friday: Gross Domestic Product, 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 your review if you are in need of a referral.
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