Here is this week's weekly mortgage commentary for the week of June 12, 2011.
The US economy continues to grow. While that statement is true, the rate of growth continues to slow, and we seem to be hitting an even slower patch. While the economy has been very dependant on manufacturing to drive this recovery, we are seeing some slowing in that segment. In previous recoveries, consumers would generally be returning to spending, and driving more of the recovery effort. However, with the economy slow to add jobs, consumers are still holding back.
This week is jam-packed with economic data for markets to digest, including Retail Sales, Industrial Production, and both the Producer and Consumer Price Indices. With so many signs that consumers are not engaging and manufacturing is slowing, a positive Retail Sales report or surprise increase in IP would probably jolt the market, and rates might move upward. We’ve had some concerns with inflation accelerating when economic growth is slowing, but as long as the PPI and CPI remain near or below expectations, then they may not provide much upward pressure on mortgage rates.
Below is how I typically deliver my weekly mortgage commentary: