Monday Mortgage News

Mortgage and Lending with Caliber Home Loans 288509

Market Comment - Week of August 15th, 2011

Mortgage bond prices rose last week, which pushed mortgage interest rates lower. Rates started off on a bad note Monday in reaction to the US debt rating downgrade, the first in history. Stocks took a roller coaster ride surging and falling hundreds of points throughout the week. The Fed kept rates unchanged and indicated the intent to keep rates low through mid 2013. Mortgage bonds pushed higher in reaction to post some solid gains Tuesday afternoon and Wednesday morning. Unfortunately some of those gains were erased Thursday afternoon following weak foreign demand for the 30Y Treasury bond auction. Despite the extreme volatility, mortgage bonds ended the week better by about 7/8 of a discount point.

The inflation reports will be the most important events this week.

Economic Factors

Economic Indicator

Release Date Time

Consensus Estimate


Housing Starts

Tuesday, Aug. 16, 2011

Down 8.2%

Important. A measure of housing sector strength. Larger than expected decreases may lead to lower rates.

Industrial Production

Tuesday, Aug. 16, 2011

Up 0.3%

Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.

Capacity Utilization

Tuesday, Aug. 16, 2011


Important. A figure above 85% is viewed as inflationary. A decrease may lead to lower rates.

Producer Price Index

Wednesday, Aug. 17, 2011

Unchanged, Core up 0.2%

Important. An indication of inflationary pressures at the producer level. Decreases may lead to lower rates.

Weekly Jobless Claims

Thursday, Aug. 18, 2011


Important. An indication of employment. Higher claims may result in lower rates.

Consumer Price Index

Friday, Aug.19, 2011

Up 0.1%, Core up 0.2%

Important. A measure of inflation at the consumer level. Lower figures may lead to lower rates.

Existing Home Sales

Friday, Aug.19, 2011


Low importance. An indication of mortgage credit demand. A significant decrease may lead to lower rates.

Philadelphia Fed Survey

Friday, Aug.19, 2011


Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.


Industrial Production

The Federal Reserve releases the Industrial Production report each month. It is a real measure of output from manufacturing, mining, electric, and gas utilities. The data is significant in that it provides an indicator of the state of the economy. Analysts use the data to attempt to determine market direction. The Fed uses the data to help set the course for monetary policy. Generally the Fed likes to see steady growth in the economy with little price pressures.

Mortgage interest rates generally react favorably to weaker than expected industrial production data. In times of economic weakness investors often move out of stocks and into mortgage bonds. When things look good investors often move out of bonds and back into stocks. We have seen these patterns frequently in recent months.

Floating into significant economic data always has some risk involved. Now is a great time to take advantage of mortgage interest rates at these historically low levels.

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WR Starkey Mortgage, LLP
NMLSR# 2146

6025 S. Quebec Street #110
Centennial, CO 80111






Jason M. Keith
Senior Loan Officer

Office: 720.489.0712
e-Fax: 1.866.546.9030
Cell: 303.263.6135 
NMLSR# 288509

©2011 Design by WR Starkey Mortgage, LLP NMLSR #2146. This is not a guarantee of financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. Colorado: To check the status of your mortgage loan originator, visit If you would like to be removed from receiving these newsletters, Click Here type REMOVE from Mortgage News.


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Jason M. Keith
Senior Loan Officer
NMLSR # 288509
Cell: 303-263-6135

Starkey Mortgage

6025 S. Quebec Street

Suite 110

Centennial, CO 80111

To check the license status of your mortgage loan originator, visit

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