East Bay Mortgage & Market Update for May 20th 2011
Economic News: The Federal Open Market Committee minutes released Wednesday did not reveal much new information since the Fed Chief already discussed the policy. The earlier estimate was that they “downgraded their forecast for GDP Growth in 2011 while bumping up the 2011 inflation forecast”. The current interest rate policy will probably remain in effect until late 2011 or early 2012. Thursday’s Jobless Claims posted a nice drop for the week with just a slight uptick in the four week moving average. Existing Home Sales came in under consensus but there was some positive news with an increase in both the median and average prices. Finally, the Philadelphia Fed Survey for May came in at 3.9 versus the expected 23 which shows a bit of weakness in the manufacturing sector. Keep in mind that any reading above zero equals positive growth.
Mortgage Markets: Treasury and Mortgage Backed Securities are gaining ground today with the weakness in the equity markets. The 10 Year Note is currently trading at 3.151% and is ending the week on a positive note.
Next Week’s Reports: Tuesday: New Home Sales Wednesday: Durable Goods Orders Thursday: Gross Domestic Product (GDP) & Jobless Claims Friday: Personal Income & Outlays, Consumer Sentiment & Pending Home Sales Index
While I do not originate loans I make it a habit to keep abreast of mortgage & market conditions. If you are thinking of purchasing a home the first step is to meet with a mortgage professional. I will gladly provide several top notch Bay Area advisers for your review if you are in need of a referral.
Stay tuned for the Next East Bay Mortgage & Market Update
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