Mortgage and Market Update
Economic News: Housing led the way in last week’s economic news. The Case-Shiller Home Price Index reaffirmed the sentiment of housing sector improvement (which those of us in the Bay Area have known about for a while). Price increases were reported for the fifth month in a row. Pending Home Sales did not disappoint either rising 2.40% on a month over month basis. News on the consumer was a bit conflicted. Consumer Confidence was lower than expected with worries persisting about the future of jobs and the economy. On the other hand, Consumer Sentiment, posted nice results to end August. This report is more weighted toward current conditions. Rounding out last week were Gross Domestic Product, Weekly Jobless Claims and Factory Orders. GDP was revised higher, jobless claims were a little weaker than expected and factory orders were solid.
Mortgage Markets: Mortgage rates were relatively unchanged last week. The 10 Year Note closed trading at 1.554% versus 1.962% in the prior week.
Next Week’s Reports: Tuesday: ISM Manufacturing Index, Construction Spending Wednesday: Productivity and Costs Thursday: Jobless Claims, ADP Employment Report, ISM Non-Manufacturing Index Friday: Employment Situation
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.