Mortgage and Market Update
Economic News: It was certainly an up and down week for the equity and debt markets. After starting the week off strong the stock market took a nosedive on Wednesday due to a combination of the election results (uncertainty regarding the ability of Congress and the President to come together on a deal concerning the “fiscal cliff” that begins in 2013) and the persistent troubles within the European Union. This weakness in the equity markets benefited the bond market and interest rates. The economic reports for the week continued the trend of good news. The ISM Non-Manufacturing Index posted positive results across the board. Weekly Jobless Claims again came in better than expected and the Consumer Sentiment reading of 84.9 is a recovery high.
Mortgage Markets: After large mid-week gains debt markets gave back a little to end the week. The 10 Year Note closed the week at 1.616% versus last week’s closing yield of 1.724%. Mortgage rates are unchanged to slightly better for the week.
Next Week’s Reports: Wednesday: Producer Price Index, Retail Sales, Federal Open Market Committee Minutes Thursday: Jobless Claims, Consumer Price Index, Philadelphia FED Survey Friday: Industrial Production
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.