Economic News…While all real estate is considered local the opposite is true for the mortgage market. Swings in the debt markets are influenced by global events, such as those happening in the Ukraine, as well as the severe winter that much of our country has had to endure. A “flight to quality” when fears persist leads to lower rates. On the flip side, a stock market which continues to move higher coupled with a brighter view of the overall economy pushes rates higher. Locally, inventory of homes for sale seems to be perking up but it is difficult to hazard a guess as to the direction of interest rates in the near term but if they rise buying power will diminish. As Spring prepares to arrive two things will be worthy of watching. One is the FED’s continued tapering of asset purchases and the other is the upswing of economic activity as many areas begin to thaw out.
Mortgage Markets…end the week under pressure from an Employment Report which seems to bolster the theory of more robust growth ahead. The 10 Year Note is trading at 2.788% which is slightly higher than last week’s closing yield of 2.656%.
Next Week’s Market Moving Reports…Wednesday: Treasury Budget Thursday: Retail Sales, Jobless Claims Friday: Producer Price Index, Consumer Sentiment
While I do not originate mortgages, I make it a habit to keep abreast of market & home loan 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.
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