Economic News: The equity markets continued to look for some footing this week ending a rocky 3rd Quarter where the Dow Jones has lost about 10% of its value. While still having some significant intraday swings the efforts to stabilize the debt troubles within the European Union will hopefully help in the upcoming weeks. Our economic reports continue to be a “mixed bag” with New Home Sales, Case-Shiller Home Price Index & Pending Home Sales not too positive. There was some good news in the sub-segments of the data. The Durable Goods Orders, while lower than July’s strong numbers, still show strength in the manufacturing sector. Consumer Confidence rose a bit and the weekly Jobless Claims broke through the 400,000 level at 391,000. Gross Domestic Product for the 2nd Quarter was revised upward to 1.3% from 1.0%. While certainly not scorching any upward revisions are both good news and welcome.
Mortgage Markets: Treasuries and Mortgage Backed Securities rallied overnight and are basically flat from last week. The 10 Year Note is trading at 1.910% up a tick from last week’s closing of 1.832% . Interest rates remain near historic lows.
Next Week’s Reports: Monday: ISM Manufacturing Index & Construction Spending Tuesday: Factory Orders Wednesday: ADP Employment Report & ISM Non-Manufacturing Index Thursday: Jobless Claims 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.