Mortgage and Market Update for November 23rd
Economic News: Another week dominated by the debt crisis in the European Union has let the air out of the US Equity Markets. The Congressional “Supercommittee” (And I use that term loosely) "punting" on any kind of debt reduction did not help matters either. In spite of worldwide governments coming up short on leadership the US Economic reports for the week were not bad. Existing Home Sales beat expectations and while pricing is under pressure inventory is down. Gross Domestic Product was revised lower on an annual basis to 2% from 2.5%. Durable Goods Orders beat estimates and Consumer Sentiment remained little changed from last month. Personal Income was up 3.9% year over year and spending was reported higher by 4.7% over the same period. Lastly, Weekly Jobless Claims were up slightly but the four week moving average, continuing a trend, moved lower. Now it’s time to lay aside all concerns and enjoy what we have to be thankful for.
Mortgage Markets: Treasuries and Mortgage Backed Securities. The 10 Year Note is currently trading at 1.886% which is down from last week’s closing of 2.014%. Mortgage Back Securities have performed well this week and interest rates have trended slightly lower over the last three days.
Next Week’s Reports: Monday: New Homes Sales Tuesday: Consumer Confidence, Case-Shiller Home Price Index Wednesday: ADP Employment Report, Pending Home Sales Index, Beige Book Thursday: Jobless Claims, ISM Manufacturing Index Friday: Employment Situation
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.