Here is the Mortgage Market Update for the week of July 28, 2008 brought to you by Larry Iest of Hemet Mortgage.
LAST WEEK
There was plenty of volatility in the bond market last week. After the horribly week the week before the market began to stabilize. The frst half of the week the bond market stayed steady despite fro Fed members speaking of increasing inflation. The bond market mounted a rebound on Thursday with a flood on negative economic news, remember when the bond market and mortgage bonds specifically increase it helps mortgage rates improve. Then Friday's news smacked the market right back down. Positive news shocked the market and money flowed out of bonds into the stock market worsening mortgage rates. Friday's reports on Consumer Confidence, New Home Sales and Durable Goods Orders were far better than the market was expecting.
THIS WEEK
This week we have quit a bit on news for the markets to digest. Many of the repots could have a high impact on the markets. Wednesday, ADP will release there Nation Employment Report. This report can move the markets because the markets see it as an indicator to the Bureau of Labor Statistics unemployment report which is the big report of the week released Friday. Thursday the Bureau of Economic Analysis will release second quarter Gross Domestic Product (GDP). GDP is a measure of the total production and consumption of goods and services in the U.S. GDP components like consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's behavior. This report and all of the different components are carefully watched by the markets. Remember two negative growth quarters measured by GDP indicate we are in a recession. Chicago PMI will also be released on Thursday which will give us insight in to the heath of the manufacturing sector. I think Thursday and Friday are going to be the big days to watch in the markets. With GDP and the Unemployment numbers being released.
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