Economic News: Five central banks agreed to coordinate US Dollar liquidity for European Banks. This has lessened the stress they were under and removed some of the volatility which has been roiling the markets. The Producer Price Index came in a little higher than expected but inflationary pressures showed signs of easing. On the other hand, the Consumer Price Index diverged from the PPI and inflation remains a little on the hot side. Weekly Jobless Claims rose to 428,000 and the four-week moving average also crept up. Industrial Production beat expectations and was the bright spot of this week’s reporting. Lastly, Consumer Sentiment beat consensus by rising to 57.8 but the underlying data on consumer expectations slipped to a 30 year low.
Mortgage Markets: Treasuries and Mortgage Backed Securities have been under pressure with a rally in the equity markets. The 10 Year Note closed trading at 2.067%.
This Week’s Reports: Monday: Housing Market Index Tuesday: Housing Starts Wednesday: Existing Home Sales, FOMC Meeting Announcement Thursday: Jobless Claims
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.