East Bay Mortgage Market Update for December 30th 2010
Economic News: Tuesday brought us the Case-Shiller Home Price Index (HPI) and Consumer Confidence. The HPI showed a moderate drop in home values from the prior month. While the numbers show downward pressure on prices it was in conflict with last week's positive news for existing and new home sales. Consumer Confidence was also disappointing reporting 52.5 versus the expected figure of 57.4. Today brought us Jobless Claims, Chicago PMI & Pending Home Sales Index. The jobless report was a nice surprise as the weekly report for claims fell 34,000 and broke though the 400,000 barrier at 388,000. The four week moving average also showed a nice decline. The Chicago PMI revealed robust business activity in the region while Pending Home Sales showed a 3.2% rise over last month's levels with healthy gains in the Western Region.
Mortgage Markets: The 10 Year Note closed trading today at 3.367%. Mortgage Backed Securities were volatile due to the lack of trading and liquidity in the market but held most of the gains from yesterday. Interest rates are still hovering at historic lows presenting an excellent time to take advantage of the market for those looking to purchase a home in the first quarter of 2011.
This Week's Reports: Monday: ISM Manufacturing Index & Construction Spending Tuesday: Motor Vehicle Sales, Factory Orders & FOMC Minutes Wednesday: ADP Employment Report & ISM Non-Manufacturing Index Thursday: Jobless Claims Friday: Employment Situation
While I do not originate loans I enjoy staying abreast of mortgage/market conditions and feel it is a benefit to my clients. If you are in need of a mortgage professional I will happily provide referrals to experienced loan officers in the Bay Area.
Stay tuned for the Next East Bay Mortgage Update...and have a HAPPY NEW YEAR!!!