Mortgage Rates Rates for July 15th, 2016 + Market Commentary

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Real Estate Agent with Tierra Antigua Realty SA624527000

 

 

 

 

 

Mortgage bond prices finished the week lower which put upward pressure on rates.  Rates were flat the beginning of the week amid no data and some stock strength.  The global stock rally continued and rates eventually pushed higher.  The Treasury auctions were weaker than normal as the flight to quality influx of funds into U.S. debt instruments tapered off.  Producer prices rose 0.5% and the core value, which excludes the volatile food and energy costs, rose 0.4%.  The figures were expected to rise 0.3% and 0.1% respectively.  Weekly jobless claims printed at 254K and continuing claims, a summation of all receiving benefits, at 2,149K. Expectations were for claims at 265K and continuing claims at 2,124K.  Consumer prices rose 0.2% as expected. Mortgage interest rates finished the week higher by approximately 1/4 of a discount point.

 

House Price Index

The Federal Housing Finance Agency (FHFA) was created on July 30, 2008, when the President signed into law the Housing and Economic Recovery Act of 2008.  The Act gave FHFA the authorities necessary to oversee vital components of our country's secondary mortgage markets - Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.  FHFA's mission is to provide effective supervision, regulation and housing mission oversight of Fannie Mae, Freddie Mac and the Federal Home Loan Banks to promote their safety and soundness, support housing finance and affordable housing, and support a stable and liquid mortgage market.

FHFA issues a monthly report on house prices called the House Price Index (HPI) that looks back 2 months in time.  The FHFA HPI is calculated using home sales price information from mortgages sold to or guaranteed by Fannie Mae and Freddie Mac.

The housing data this week will shed light on a major component of our economy.  Signs of weakness will likely help rates stay low while any indications of strength could push rates higher in the short term.  Stay alert heading into the data.

 

Thinking about buying a home?  Talking to a local lender should be any buyer's first step (yes, even cash buyers).  Next step, talk with an experienced buyer's agent.  Spirit 520  471-6900

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