Mortgage and Market Roundup for November 6th
Economic News: Once again news out of Europe on the progress of handling their sovereign debt crisis is having a major effect on our markets. Last week stocks rallied on the news that the situation in Greece may be under control only to be unwound by the Greek Prime Minister. This has produced a nice rally in our mortgage rates this week with the stock market under pressure. Greece agreed today to form a national unity government whose purpose is to oversee elections. Look for continued volatility in the markets in the near term. As far as US economic news is concerned there was nothing really earth shattering. The Federal Open Market Committee announcement on Wednesday reiterated that interest rates will stay at low levels through mid 2013 and the economy still has “significant downside risk”. The unemployment rate slid to 9% from 9.1% and 80,000 jobs were added which was less than expected.
Mortgage Markets: Treasuries and Mortgage Backed Securities have had a good week and interest rates improved. The 10 Year Note closed trading at 2.040% which is down from last week’s closing of 2.315%.
Next Week’s Reports: Thursday: International Trade, Jobless Claims Friday: 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.