Mortgage and Market Update
Economic News...Back to a week of mixed data but the Stock Market continues to pretty much ignore negative news and move higher. This run to new highs has left the bond markets under continued pressure. Retail Sales, while not robust, did show signs that the consumer is feeling more comfortable spending on discretionary items. The manufacturing sector contracted a bit in April with both production and capacity utilization easing. Weekly Jobless Claims jumped unexpectedly to 360K after being range bound for the last few weeks around the 330K level. Inflation concerns continue to be muted and Consumer Sentiment rounded out the week “blowing by” anticipated levels.
Mortgage Markets...Mortgage rates continue to trend higher. Thursday’s data provided a bit of a rally but yields on Mortgage Backed Securities and the general bond market are again under pressure. The 10 Year Note is currently trading at 1.956% which is up from last week’s closing yield of 1.898%.
Next Week’s Market Moving Reports...Wednesday: Existing Home Sales, Federal Open Market Committee Minutes Thursday: Jobless Claims, New Home Sales Friday: Durable Goods Orders
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.