Mortgage and Market Update for January 27th
Economic News...for the week was mixed with a bias toward the positive. Pending Homes Sales, while softer in December, are up 5.6% versus a year ago. New Home Sales fell to an annualized pacet of 307,000 versus 320,000 and inventory increased slightly. GDP increased 2.8% in the fourth quarter and for all of 2011 was up 1.7% which is not stellar but at least moving in the right direction. The report on Durable Goods Orders provided upbeat news on the manufacturing sector handily beating estimates and the results for November were revised higher as well. Weekly Jobless Claims moved up a touch but the four week moving average continued to move lower. Lastly, the Federal Open Market Committee indicated that the current low interest rate environment will continue into the latter part of 2014. This is a change from the prior sentiment of mid 2013.
Mortgage Markets: Treasuries and Mortgage Backed Securities have improved slightly for the week. The 10 Year Note is trading around 1.907% which is down from last Friday’s closing yield of 2.03%.
Next Week’s Reports: Monday: Personal Income & Outlays Tuesday: S&P Case-Shiller Home Price Index, Consumer Confidence Wednesday: ADP Employment Report, ISM Manufacturing Index Thursday: Jobless Claims Friday: Employment Situation, Factory Orders, ISM Non-Manufacturing 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.