Mortgage and Market Report for the week ending August 5th
Economic News: The Dow Jones Industrial Average closed in positive territory to end the week after taking a huge drubbing over the last several days. Numerous reports this week pointed to a slowdown in the US Economy, which coupled with the continued contagion fears with the European sovereign debt crisis taking aim at Italy, had the stock market reliving the late 1970’s. Italian Prime Minister Silvio Berlusconi announced reforms including a balanced budget amendment which has calmed the market for now. Let’s hope things get back on track next week. It is great having super low interest rates but the economy needs to be able to produce the jobs and wages so folks can take advantage of them.
Update: After the closing bell S&P downgraded the debt rating of the United States to AA+ with a negative outlook. I guess they were not pleased with the results of the recent efforts of our government to get debt under control. Overseas markets are opening lower today and we will see what the Asian markets have in mind in the next few hours.
Mortgage Markets: Treasuries and Mortgage Backed Securities gave back a bit of the significant gains of the past week but remain at mulit-month lows. The 10 Year Note closed trading at 2.565%.
Next Week’s Reports: Tuesday: Productivity and Costs, FOMC Minutes Thursday: Jobless Claims & International Trade Friday: Retail Sales & Consumer Sentiment
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.