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Mortgage News Week In Review 9/8/2014 Dana Bain Premiere Mortgage

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

http://www.bainmortgage.com/MortgageMarketWeekInReview

 

 

 

Newsletter-September 8th, 2014     
Provided by
Dana Bain
Dana Bain
Premiere Mortgage Services
11 Malvern Hill Road
Sterling, MA 01564
Phone: (978) 422-2311
Fax: (978) 422-2313
E-Mail: dana@bainmortgage.com
 
 

Market Comment

Mortgage bond prices finished the week near unchanged which kept rates in check. Stronger than expected ISM Index data Tuesday morning caused rates to spike a little higher. Weaker than expected ADP employment data helped recover those earlier losses. ADP employment came in at 204k versus the expected 220k mark. Weekly jobless claims were near expectations at 302k versus the predicted 300k. The trade deficit was $40.5b versus the expected $42b. There was a small spike in rates late in the week tied to the European Central Bank rate cut. The heavyweight employment report helped balance things Friday morning. Unemployment came in at 6.1% as expected. Non-farm payrolls rose 142k versus the expected 225k increase. Mortgage interest rates finished flat for the trading week.

LOOKING AHEAD

Economic
Indicator

Release
Date & Time

Consensus
Estimate


Analysis

Consumer Credit

Monday, Sept. 8,
3:00 pm, et

$9.87b

Low importance. A significantly large increase may lead to lower mortgage interest rates.
3-year Treasury Note Auction

Tuesday, Sept. 9,
1:15 pm, et

None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
10-year Treasury Note Auction

Wednesday, Sept. 10,
1:15 pm, et

None

Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Weekly Jobless Claims Thursday, Sept. 11,
8:30 am, et
307k Important. An indication of employment. Higher claims may result in lower rates.
30-year Treasury Bond Auction

Thursday, Sept. 11,
1:15 pm, et

None

Important. Bonds will be auctioned. Strong demand may lead to lower mortgage rates.
Retail Sales Friday, Sept. 12,
8:30 am, et
Up 0.8% Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates.
U of Michigan Consumer Sentiment Friday, Sept. 12,
10:00 am, et
82.5 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
Business Inventories Friday, Sept. 12,
10:00 am, et
Up 0.3% Low importance. An indication of stored-up capacity. A significantly larger increase may lead to lower 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 fluctuations, 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.



            #RealEstate #DanaBain #Mortgages www.BainMortgage.com

 
 
 
   MORTGAGE MARKET IN REVIEW Newsletter-September 8th, 2014     

 

 

Comments (2)

Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

Hi Dana, thanks for the mortgage update and for sharing with us in Ar Land.

Sep 08, 2014 08:00 AM
John Pusa
Glendale, CA

Dana - This is a great report on mortgage news week in review, on September 8, 2014.

Sep 08, 2014 08:32 AM