Cari Anderson's East Bay Mortgage Update for October 15th 2010
Economic News: The majority of the economic reports were concentrated at the end of the week. On Thursday Initial Jobless Claims and the Producer Price Index (PPI) were reported. The jobless numbers were higher than expected at 462,000 and there was a very slight increase in the four week moving average. The PPI figures showed an increase of .40% from last month and up 4% from last year. When the volatile food and energy components are excluded producer prices increased a modest 1.5% over last year. Friday's Consumer Price Index (CPI) revealed that inflation at the consumer level is very soft. The Retail Sales report was good news and came in at the high end of expectations with spending gains across most sectors. In a strange contrast to the retails sales results Consumer Sentiment was lower than forecast.
Mortgage Markets: The 10 Year Note and Mortgage Backed Securities have lost some ground this week and rates have risen accordingly. Yesterday's 30 Year Bond Auction was not well subscribed and has kept the bond market under pressure. The 10 Year Note is currently trading at 2.583%.
Next Week's Reports: Monday: Industrial Production & Housing Market Index. Tuesday: Housing Starts. Thursday: Jobless Claims & Philadelphia Fed Survey.
Stay tuned for the Next East Bay Mortgage Update...
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