Mortgage and Market Update
Economic News...The minutes of the Federal Open Market Committee did not reveal any substantial change in thought about current monetary policy. A nice tidbit was that the view of the economic results and reports since the last meeting “was somewhat more positive than expected”. Weekly Jobless Claims, while disappointing last week, made a dramatic about-face this week coming in at 346K versus the expected 365K. The two major reports for today have contributed to improvement in the bond markets and mortgage rates. Retail Sales figures were tepid and are definitely worth watching in the near-term as there are differing opinions as to whether the payroll tax increases are taking a bite out of sales...or was it the weather? Lastly, Consumer Sentiment also disappointed but this report has been very volatile as of late.
Mortgage Markets...Mortgage rates were trending slightly higher through Wednesday but have moved lower since. The 10 Year Note is currently trading at 1.723% which is virtually unchanged from last week’s closing yield of 1.710%.
Next Week’s Market Moving Reports...Monday: Housing Market Index Tuesday:Consumer Price Index, Housing Starts, Industrial Production Wednesday: FOMC Minutes
While I do not originate mortgages, I make it a habit to keep abreast of market & home loan 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.
