I apologize for being late this week, busy, busy!
Brentwood TN Real Estate
Mortgage bond prices fell pushing mortgage interest rates higher. Inflation fears were fanned by stronger than expected durable goods data. The Treasury auctions added extra supply amid terrible foreign demand. Unfortunately this pressured mortgage bonds lower and rates higher. Oil prices retreated but still remained high amid declining US reserves.
For the week, interest rates on government and conventional loans rose by about 7/8's of a discount point.
The employment report Friday will be the most important event this week. The ADP employment release and revised productivity data will also be important. Expect oil and stocks to continue to dominate trading as inflation fears remain a concern.
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Economic Factors
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Economic Indicator
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Release Date Time
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Consensus Estimate
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Analysis
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Construction Spending
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Monday, June 2, 2008
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Down 0.6%
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Low importance. An indication of economic strength. A significant decrease may lead to lower rates.
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ISM Index
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Monday, June 2, 2008
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48.0
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Important. A measure of manufacturer sentiment. A large decline may lead to lower mortgage rates.
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Factory Orders
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Tuesday, June 3, 2008
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Up 0.1%
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Important. A measure of manufacturing sector strength. A large decrease may lead to lower rates.
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ADP Employment
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Wednesday, June 4, 2008
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-30k
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Important. A measure of private employment. A larger decrease may lead to lower rates.
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Revised Q1 Productivity
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Wednesday, June 4, 2008
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Up 2.5%
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Important. A measure of output per hour. Improvement may lead to lower mortgage rates.
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Employment
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Friday, June 6, 2008
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Unemp. @ 5.1%, Payrolls -52k
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Very important. An increase in unemployment or a large decrease in payrolls may bring lower rates.
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Consumer Credit
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Friday, June 6, 2008
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Up $7.7 billion
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Low importance. A significantly larger than expected increase may lead to lower mortgage interest rates.
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ISM Report
The Institute for Supply Management (ISM), formerly the National Association of Purchasing Management (NAPM), releases the "Report on Business" on the first working day of each month. Part of this report is the "diffusion index," which tracks the economy's ups and downs fairly well.
*Information courtesy Tonya Esquibel, WR Starkey Mortgage, Franklin, TN*
Brentwood TN Real Estate
Vanessa Stalets
RE/MAX Elite
615-661-4400
;)
;)
Vanessa, thanks for the alert on the economic reports. I'll tune into the unemployment one on Friday morning. CNBC usually carries that one live at 7:30 am Central.