Economic News…The stock market continues to roll on with the Dow Jones making new highs (four in a row this week). While the growth of equities is good news for the consumer and market in general, it traditionally comes at a cost to the debt markets. This morning’s Employment Situation report was “icing on the cake” for traders and has sent mortgage rates higher. Weekly Jobless Claims also continued to move lower and once again beat estimates. There was an interesting article in last week’s New York Times which highlights the value of excellent communication and customer service. “About a third of customers are willing to pay more for a mortgage that comes with superior customer service and less stress”. I would like to see a similar survey on the listing of homes. Just last week I was contacted by a seller regarding why his property was not moving. Since it was already listed I could not tell him much but after reviewing how his home was being marketed it was apparent why it was not selling quickly at a premium price. In many cases those looking for a deal with the listing agent may end up shortchanged on their selling price.
Mortgage Markets…Mortgage rates are under pressure with the continued rise in the equity markets. The 10 Year Note is currently trading at 2.058% versus last week’s closing level of 1.856%.
Next Week’s Market Moving Reports…Wednesday: Retail Sales Thursday: Jobless Claims, Producer Price Index Friday: Consumer Price Index, Industrial Production, Consumer Sentiment
Remember that Daylight Savings Time arrives this weekend so don’t forget to set your clocks forward on Saturday night!
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.