Mortgage and Market Update
Economic News: Another week of mixed data that trended more toward the positive than negative. The ISM Manufacturing Index was a little disappointing as it fell to 49.5. A reading greater than 50 marks expansion. Construction Spending results offset the weaker manufacturing numbers by continuing to rise and is up 9.6% versus this time last year. October Factory Orders handily beat estimates by rising .8%. On the employment front we saw Weekly Jobless Claims decline and the unemployment rate decrease to 7.7%. There was some concern with the decreased rate being tied to a shrinking labor participation rate. Lastly, Consumer Sentiment experienced a sharp decline which was attributed to the lack of progress between the White House and Congress on resolving the “fiscal cliff” issues we are facing in the new year.
Mortgage Markets: After some mid-week volatility Mortgage Backed Securities are settling down to end the week. The 10 Year Note is currently trading at 1.626% versus 1.608% at the end of last week.
Next Week’s Reports: Tuesday: International Trade Wednesday: FOMC Meeting Announcement, FOMC Forecast, Chairman Press Conference Thursday: Jobless Claims, Producer Price Index, Retail Sales Friday: Consumer Price Index, 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.