Mortgage and Market Update
Economic News...Existing Home Sales were reported lower than anticipated. While typically this could be seen as a negative a closer look reveals that the lack of inventory of homes for sale is to blame. So, on the positive side is a simple story of supply and demand where lack of supply (coupled with greater demand) will drive prices higher. This was also evident in the New Home Sales numbers. Weekly Jobless Claims were much better than expected for the second week in a row. Keep an eye out on jobless number revisions as three states, including California, did not report their totals leading to the utilization of estimates in the report. There is certainly a lot of economic news on tap next week which could continue the upward pressure on mortgage rates.
Mortgage Markets...The debt markets continue to struggle. Positive news overnight on the German economy, coupled with strong domestic corporate earnings, led to a sell-off. The 10 Year Note is currently trading at 1.952% versus last week’s closing yield of 1.852% while the S&P 500 closed above 1500 for the first time in five years. You know what though?...mortgage rates are still fantastic!
Next Week’s Market Moving Reports...Monday: Durable Goods Orders, Pending Home Sales Index Tuesday: S&P Case-Shiller Home Price Index, Consumer Confidence Wednesday: ADP Employment, Gross Domestic Product, FOMC Meeting Announcement Thursday: Jobless Claims, Personal Income & Outlays Friday: Employment Situation, Consumer Sentiment, ISM 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.
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