East Bay Mortgage & Market Update
Economic News: The good news for this week is that lower energy costs have eased inflation worries. This was apparent in the results of both the Producer Price Index as well as the Consumer Price Index. Retail Sales either matched or beat expectations and Jobless Claims improved over last week but remain above the 400,000 threshold. Lastly, the consumer is not too happy as Consumer Sentiment fell to 63.8 from an expected 71. This represents a two year low. Keep a sharp eye out on what is happening in Europe with the debt downgrades and their efforts to stabilize the system. That situation coupled with our governments Tug-of-War over taxation, spending cuts and the debt ceiling will most likely keep volatility high in the near term.
Mortgage Markets: Treasuries and Mortgage Backed Securities have had a volatile week but are fairly quiet today. The 10 Year Note closed trading Friday at 2.911% which is slightly lower than last Friday’s close of 3.025%.
Next Week’s Reports: Monday: Housing Market Index Tuesday: Housing Starts Wednesday: Existing Home Sales Thursday: Jobless Claims & Philadelphia Fed Survey
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.