Economic News: Another week full of ups and downs with lingering concerns over the sovereign debt issues in the European Union as well as the rumor that the US Government was set to file suit against 17 banks. (Which it did after the closing bell Friday) We started out with Personal Income & Outlays. Income met expectations while consumer spending was well above forecast. Factory Orders for July were robust, especially in the auto sector, and mostly attributed to Japanese suppliers returning to the market. The ISM Manufacturing Index also beat consensus estimates. Now for the not so good news. The Pending Home Sales Index was worse than expected and the West was the only region with increased activity. Consumer Confidence fell precipitously to the lowest reading since April of 2009 and was most likely the result of the market swings and uncertainty August brought us. Lastly, the Employment Situation was disappointing to the stock market and has led to a broad sell off. The national unemployment rate remained at 9.1% with zero jobs added in August.
Mortgage Markets: Treasuries and Mortgage Backed Securities are ending the week with big rallies due to the employment report. The 10 Year Note closed trading at 1.991% versus last weeks close of 2.197%.
Next Week’s Reports: Tuesday: ISM Non-Manufacturing Index Wednesday: Beige Book Thursday: Jobless Claims, International Trade
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.