Economic News: The market news continues to be mixed but results for the week were better than the performance the stock market would indicate. Existing Home Sales were weaker than expected down 15.3% on a year over year basis as well as a slight uptick in supply. The National Association of Realtors hinted that next week’s Pending Home Sales report will show solid gains. On Wednesday the Federal Open Market Committee left the Fed Funds rate unchanged and noted that the economic recovery continues “though somewhat more slowly than the committee expected”. Jobless Claims for the week crept up a touch but the four week moving average was down by 15,000 to 426,000. New Home Sales fell in May but the results were better than expected and supply continues to drop. Durable Goods Orders were a strong point for the week up 9% over year ago levels and reversing the trend of weaker manufacturing data. Lastly, Gross Domestic Product was revised slightly higher to 1.9% from 1.8% Although the increase is small any upward move is always welcome.
Mortgage Markets: Treasuries and Mortgage Backed Securities are closing out the week slightly better than last. This is mainly due to the weakness that hit the stock market mid week. The 10 Year Note is currently trading at 2.876%.
Next Week’s Reports: Monday: Personal Income & Outlays Tuesday: S&P Case-Shiller Home Price Index & Consumer Confidence Wednesday: Pending Home Sales Index Thursday: Jobless Claims & New Home Sales Friday: Consumer Sentiment & ISM Manufacturing Index
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.