Mortgage Market Update for the week of July 02, 2007 brought to you by Larry Iest of Hemet Mortgage

Here is the Mortgage Market Update for the week of July 02, 2007 brought to you by Larry Iest of Hemet Mortgage.

LAST WEEK

Last week, was packed with high impact financial reports and news. The big event was the Federal Reserve meeting which adjourned Thursday. There was no change to the Fed Funds Rate which was as expected. The other big report was the Fed's favorite gauge on inflation the Personal Consumption Expenditure Index (PCE). The PCE showed that the current year-over-year pace of inflation is down to a friendly 1.9%. This is within the Fed's target range for inflation of 1.0% to 2.0%. The bond market reacted favorably to the news.

THIS WEEK

On the heels of last week's full slate of economic events, the schedule this week is fairly tame. The market will close early Tuesday will be closed Wednesday in observance of the Independence Day Holiday. The big report this week comes Friday when the monthly Jobs Report arrives.

MONDAY
The only Report being released today is the Institute of Supply Management (ISM) Index, giving a read on the health of the manufacturing sector.  It came in stronger than expected - and actually at the highest level in 14 months.  Stocks seem to like the strong news, although Bonds have had little reaction.     

FRIDAY
The most important release of the week comes early Friday morning. The Labor Department will give us June's unemployment rate, number of new payrolls added and average hourly earnings. These are considered to be very important readings of the employment sector. The labor market has remained incredibly tight, which is one of the reasons the Fed isn't anxious to declare that inflation is completely controlled just yet. This report always has to potential to be a market mover.