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Mortgage Newsletter- October 15th, 2012 Dana Bain Premiere Mortgage 978-422-2311

By
Mortgage and Lending with Premiere Mortgage Services Inc. MLO 18693

http://www.bainmortgage.com/MortgageMarketWeekInReview

Newsletter-October 15th, 2012
Provided by
Dana Bain & Robin Dunbar Bain

Dana Bain
Premiere Mortgage Services

www.BainMortgage.com

11 Malvern Hill Road
Sterling, MA 01564
Phone: (978) 422-2311
Fax: (978) 422-2313
E-Mail: dana@bainmortgage.com

 
 
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Market Comment

Mortgage bond prices finished the week higher pushing rates lower.Rates were actually higher the beginning of the week despite a lack of significant data or news.Rates bounced back lower Wednesday afternoon after the Fed “Beige Book” reported a slowly expanding economy with flat spending.News out of the euro zone continued to focus on Spain’s debt problems.The S&P downgraded Spanish debt to one notch above junk.Many analysts consider this a step closer to Spain requesting a formal bailout.Continued economic turmoil in the euro zone generally bodes well for lower U.S. rates as it reignites flight to quality buying of U.S. debt.Mortgage interest rates finished the week better by about 1/8 of a discount point.

LOOKING AHEAD

Economic
Indicator

Release
Date & Time

Consensus
Estimate


Analysis

Retail Sales

Monday, Oct. 15,
8:30 am, et

Up 0.7% Important.A measure of consumer demand.Weakness may lead to lower mortgage rates.
Consumer Price Index

Tuesday, Oct. 16,
8:30 am, et

Up 0.3%,
Core up 0.1%

Important.A measure of inflation at the consumer level.Weaker figures may lead to lower rates.
Industrial Production

Tuesday, Oct. 16,
9:15 am, et

Up 0.4% Important.A measure of manufacturing sector strength.A lower than expected increase may lead to lower rates.
Capacity Utilization

Tuesday, Oct. 16,
9:15 am, et

77.9% Important.A figure above 85% is viewed as inflationary.Weaker figure may lead to lower rates.
Housing Starts

Wednesday, Oct. 17,
8:30 am, et

670k Important.A measure of housing sector strength.Weakness may lead to lower rates.
Weekly Jobless Claims

Thursday, Oct. 18,
8:30 am, et

342k Important.An indication of employment.Higher claims may result in lower rates.
Philadelphia Fed Survey

Thursday, Oct. 18,
10:00 am, et

1.2 Moderately important.A survey of business conditions in the Northeast.Weakness may lead to lower rates.
Leading Economic Indicators

Thursday, Oct. 18,
10:00 am, et

Up 0.1% Important.An indication of future economic activity.Weakness may lead to lower rates.
Existing Home Sales

Friday, Oct. 19,
10:00 am, et

4.84m Low importance.An indication of mortgage credit demand.Significant weakness may lead to lower rates.

Business Inventories

The report on business inventories basically gives a broader look at the durable goods, factory orders, and retail sales reports. Not only is this report an important part of the investment component of the GDP, but it also provides additional evidence about the economy in the upcoming months. Changes in business inventories slow as the economy approaches a peak, and rise as the economy approaches the trough of a recession. Therefore the change in business inventories is a leading indicator of GDP. The data for this report, which are published by the Department of Commerce’s Census Bureau, comes from a monthly survey of inventories, orders, and manufacturers’ shipments, in addition to the merchant wholesalers and retail trade surveys.

In this environment every piece of data has the potential to cause some volatility.

 

 
 
 
MORTGAGE MARKET IN REVIEW Newsletter-October 15th, 2012

Comments (2)

Alan Kirkpatrick
Austin Texas Homes - Round Rock, TX
Alan in Austin

Dana:

Nice post and good information. Have a great day. 

Oct 15, 2012 03:19 AM
Dana Bain
Premiere Mortgage Services Inc. - Sterling, MA

Thanks Alan.  :)

Oct 22, 2012 03:32 AM