Mortgage and Market Update
Economic News...was heavy this week and, despite a few bumps, was strong enough for the equity markets to continue their winning ways. News on the inflation front was tame as both the Producer Price Index and Consumer Price Index pulled back. Retail Sales for December rebounded from weaker November levels and were up .50% versus the expected .20%. Industrial Production came in above estimates and provided a positive view on the manufacturing sector which had been a concern recently. Housing Starts for December grew sharply with the Multi-Family group leading the way. Single Family Home Starts were not far behind. The Housing Market Index cooled a bit after a long run of gains with the West posted the best results. Finally, Consumer Sentiment continued to soften in the first two weeks of the New Year.
Mortgage Markets...The debt markets rallied a bit early in the week but ran into headwinds on Thursday. After continued losses overnight things seem to be stabilizing as we head into the long weekend. The 10 Year Note is currently trading at 1.852% versus last week’s closing yield of 1.877%.
Next Week’s Market Moving Reports... Tuesday: Existing Home Sales Thursday: Jobless Claims Friday: New Home Sales
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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