Last week brought a mixed bag of economic news.  Mortgage rates rose slightly last week, trading was calm as many were on summer vacations.  It will be worth returning from vacation for this week as lots of items are on the economic calendar.

econcal0729

This week expect lots of rate volatility starting on Tuesday when consumer confidence numbers are released.  Other market moving items on the calendar include GDP, Fed adjournment, Payroll data, unemployment rate and PCE prices.

Keep thing is prospective when thinking about locking a rate.  Rates remain low and it is still a great time to purchase or refinance a home

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

What's Ahead For Mortgage Rates This Week July 8 2013

Financial markets remain extremely volatile, a trend that is expected to continue.  Last week mortgage rates were significantly higher than those the at the close of the week prior.

The most meaningful economic reports of the week will be on the last two days of the week with Jobless Claims on Thursday and Consumer Sentiment on Friday.  Also of importance this week are the Treasury auctions with this week’s cycle being the more relevant 3, 10, and 30yr terms.  That gives Tuesday a bit more bite, at least in the afternoon (because without the 3yr auction,

Date

Time (ET)

Statistic

For

Market Expects

Prior

07/08/13

03:00:00 PM

Consumer Credit

May

$13.2B

$11.1B

07/09/13

01:15:00 PM

3-year Treasury Note Auction

07/10/13

01:15:00 PM

10-year Treasury Note Auction

07/10/13

02:00:00 PM

FOMC Minutes

06/19/13

07/11/13

08:30:00 AM

Initial Claims

07/06/13

345K

343K

07/11/13

01:15:00 PM

30-year Treasury Bond Auction

07/12/13

08:30:00 AM

PPI

Jun

0.30%

0.50%

07/12/13

08:30:00 AM

Core PPI

Jun

0.10%

0.10%

07/12/13

09:55:00 AM

Mich Sentiment

Jul

84.8

84.1

Mortgage rates remain at historically low levels but are continuing to rise.  Now is a great time to consider purchasing a home.

 

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

What’s Ahead For Mortgage Rates This Week – July 1, 2013The past week was active for economic news and mortgage rates.   After a rising significantly earlier in the week mortgage interest rates ended the week almost unchanged from the close of the prior week.

Here’s the scoop on last week’s activity affecting real estate markets:

Tuesday’s Case-Shiller Composite Indices for April demonstrate the momentum of recovery in many housing markets. As of April, national home prices had increased by 12.10 percent as compared to April 2012. April’s reading also exceeded March’s reading of 10.10 percent year-over-year.

FHFA released its home prices report for April and noted that the average price for homes with mortgages owned by Fannie Mae or Freddie Mac increased by 7.40 percent, which slightly surpassed the March reading of 7.20 percent.

The Department of Commerce released New Home Sales for May and reported 476,000 new homes sold on a seasonally-adjusted annual basis. This exceeded expectations of 453,000 new home sales and also surpassed April’s reading of 454,000 new homes sold.

Wednesday brought the Gross Domestic Product (GDP) report for the first quarter of 2013. The GDP grew by 1.80 percent against expectations of 2.40 percent and the previous quarter’s growth, also 2.40 percent.

Freddie Mac’s Primary Mortgage Market Survey (PMMS) brought the days of bargain basement mortgage rates to a halt as average mortgage rates for a 30-year fixed rate mortgage moved from last week’s 3.93 percent to 4.46 percent. Average rates for a 15-year fixed rate mortgage rose from 3.04 percent 3.50 percent. This was the largest weekly jump in mortgage rates in 26 years.

Home buyers may also consider a 5/1 adjustable rate mortgage, which provides an average 5 year fixed rate of 2.74 percent.  The fixed mortgage rate converts to an adjustable rate after five years.

The National Association of REALTORS ® reported that Pending Home Sales in May rose by +6.70 percent to their highest level in 6 years.

Last week ended on a positive note with the Consumer Sentiment Index for June beating expectations of 83.0 and coming in at 84.1. May’s reading was 82.1; higher consumer confidence is likely driving demand for available homes.

Whats Ahead This Week

A holiday-shortened week is ahead, and so is the all-important Jobs Report for June.

Date Time (ET) Statistic For Market Expects Prior
07/01/13 10:00:00 AM Construction Spending May 0.50% 0.40%
07/02/13 10:00:00 AM Factory Orders May 2.00% 1.00%
07/03/13 07:30:00 AM Challenger Job Cuts Jun NA -41.20%
07/03/13 08:15:00 AM ADP Employment Change Jun 150K 135K
07/03/13 08:30:00 AM Initial Claims 06/29/13 348K 346K
07/03/13 08:30:00 AM Trade Balance May -$40.8B -$40.3B
07/03/13 10:00:00 AM ISM Services Jun 54 53.7
07/05/13 08:30:00 AM Nonfarm Payrolls Jun 165K 175K
07/05/13 08:30:00 AM Unemployment Rate Jun 7.60% 7.60%
07/05/13 08:30:00 AM Hourly Earnings Jun 0.20% 0.00%
07/05/13 08:30:00 AM Average Workweek Jun 34.5 34.5

Home mortgage rates remain at  historical low levels.  It is a perfect time to consider a home purchase or refinance.

Paul Cantor

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

What's Ahead For Mortgage Rates This Week - June 24, 2013

Mortgage rates continued their upward trend last week.  Comments by Fed chairman Ben Bernanke after Wednesday’s FOMC meeting caused havoc in financial markets as investors anticipated the potential effects of any rollback of the Fed’s policy of quantitative easing (QE). Chairman Bernanke said that the Fed may begin reducing its $85 billion monthly purchase of Treasury securities and Mortgage Backed Securities (MBS) toward the end of this year.

Will Mortgage Rates Fall This Week?

Rates have risen significantly over the previous 3 days, following a similar pattern over the previous month.  It is doubtful that rates will drop back to the levels we saw this spring but may ease a little.  Historically speaking mortgage rates are still at rock bottom low levels.

There is a good amount of economic data being released this week that will impact financial markets:

Economic Calendar:

Week Of Mon, Jun 23 2013 – Fri, Jun 27 2013
Time

Event

Period Unit Forecast
Tue, Jun 25
08:30 Durable Goods May

%

3.0

09:00 FHFA Home Price mm

Apr

%

09:00 Case Shiller Home Prices

Apr

%

1.2

10:00 New home sales-units mm May ml 0.463
10:00 Consumer confidence Jun

75.5

13:00 2-Yr Note Auction

bl

35.0

Wed, Jun 26
07:00 MBA Mortgage market index

w/e

07:00 MBA 30-yr mortgage rate

w/e

%

08:30 GDP Final

Q1

%

2.4

08:30 GDP deflator Final

Q1

%

1.1

13:00 5yr Treasury Auction

bl

35.0

Thu, Jun 27
08:30 Midwest manufacturing May

08:30 Personal income mm May

%

0.2

08:30 Consumption, adjusted mm May

%

0.3

10:00 Pending sales change mm May

%

0.9

13:00 7-Yr Note Auction

bl

29.0

Fri, Jun 28
09:45 Chicago PMI Jun

56.0

09:55 U.Mich sentiment Jun

82.7

It’s Not Too Late To Lock A Low Rate

Rates have risen from all time lows.   Home affordability is high and studies have estimated millions of home owners would still benefit by refinancing at current rates.  Now is a good time to talk with your loan officer.

 

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter