Mortgage and Market Update
Economic News: This week’s reports were pretty positive on all fronts. The ISM-Manufacturing Index improved after three consecutive months of declines. Construction Spending is up 6.5% over year ago levels. Motor Vehicle Sales hit their highest level since 2008. Weekly Jobless Claims held steady at 367,000 and there was also a decrease in the four week moving average. Factory Orders were a tad disappointing but when the volatile aircraft sector was factored out orders rose for the second month in a row. Today’s much anticipated Employment Report had the unemployment rate decline to 7.8% from 8.1%. While the report was good news labor growth is still considered tepid and there is quite a bit of “back and forth” going on regarding the accuracy of the numbers. And some more good news for our California Housing Market...equity sales reached their highest level in four years.
Mortgage Markets: The 10 Year Note is currently trading at 1.729% versus a closing yield of 1.632% last week. Mortgage Backed Securities are losing a little ground to end the week and mortgage rates moved up just a tick.
Next Week’s Reports: Wednesday: Beige Book Thursday: Jobless Claims, International Trade Friday: Producer Price Index, Consumer Sentiment
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.
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