What's Ahead For Mortgage Rates This Week July 22 2013Mortgage rates improved slightly last week., as economic news was a mixed bag with retail sales and housing starts coming in lower than expected, but home builder confidence in housing markets increased.

Weekly jobless claims fell, and Fed Chair Ben Bernanke testified before the Senate, saying that falling gold prices were an indication of increasing confidence in the economy, but that it was “way too soon” to say when the Fed’s quantitative easing program would be reduced.

 

What’s Coming Up

 

Date Time (ET) Statistic For Market Expects
07/22/13 10:00:00 AM Existing Home Sales Jun 5.28M
07/23/13 01:15:00 PM 2Y Treasury Note Auction ‘- ‘-
07/24/13 10:00:00 AM New Home Sales Jun 481K
07/24/13 01:15:00 PM 5Y Treasury Note Auction    
07/25/13 08:30:00 AM Initial Claims 07/20/13 328K
07/25/13 08:30:00 AM Durable Orders Jun 1.50%
07/25/13 08:30:00 AM Durable Goods -ex transportation Jun 0.40%
07/25/13 01:15:00 PM 7Y Treasury Note Auction ‘- ‘-
07/26/13 09:55:00 AM Michigan Sentiment – Final Jul 84.2

.

Affordability remains high for home buyers.  Long term it is expected to see home prices and interest rates to rise; it is a good time to buy 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 -- June 10, 2013Last week’s economic reports provided a mixed bag of results. On Monday, the Department of Commerce reported that construction spending increased by 0.40 percent in April and fell shy of the expected reading of 1.0 percent, but exceeded the March reading of -0.80 percent.

Home Prices Increase Fastest Since 2006

On Tuesday, CoreLogic released its Home Prices reported that the national average home price had increased by 12.10 percent year-over-year in April. The comparable year-over-year reading for April 2012 was 11.00 percent. This represents the fastest pace of home price increases since 2006.

The national average home price expanded by 3.20 percent as compared to March,  but average prices grew faster in the West, which is experiencing a pronounced lack of available homes and developed land for building.

New Jobs Created Showing Improvement Over April Revisions 

ADP released its private-sector Payrolls Report for May on Wednesday; 135,000 new private sector jobs were added as compared to investor expectations of 170,000 jobs added in May. The May reading surpassed April’s downwardly-revised reading of private-sector jobs added.

Friday’s Jobs Report, issued by the Bureau of Labor Statistics, consists of the Non-Farm Payrolls Report and the National Unemployment Rate. Non-Farm Payrolls added 175,000 public and private sector jobs and surpassed both the consensus reading of 164,000 new jobs and the prior week’s reading of 149,000 jobs added. The National Unemployment Rate ticked up from 7.50 to 7.60 percent. The Department of Labor attributes this increase to more people joining or returning to the labor market.

Investors Watching Fed Mortgage Backed Security Buying Activity Closely

The Federal Reserve Beige Book Report was also released Wednesday. It contained no surprises and noted modest to moderate economic growth in 11 of 12 Federal Reserve Districts. The Dallas Federal Reserve District reported strong growth, but investors will be watching next week’s Federal Open Market Committee (FOMC) meeting closely for proposed changes to the Fed’s current policy of buying bonds and mortgage backed securities (MBS) with the goal of keeping long term interest rates lower.

Thursday’s Primary Mortgage Market Survey brought disquieting news of rising mortgage rates. Freddie Mac reported that the average rate for a 30-year fixed rate mortgage had risen from the prior week’s rate of 3.81 percent to 3.91 percent. Discount points fell slightly from 0.80 percent to 0.70 percent with buyers paying all of their closing costs. The average rate for a 15-year fixed rate mortgage rose from last week’s average rate of 2.98 percent to 3.03 percent with discount rates remaining the same at 0.70 percent for buyers paying all of their closing costs.

Whats Ahead this Week

Week Of Mon, Jun 9 2013 – Fri, Jun 13 2013

Time

Event

Period

Unit

Forecast

Prior

Tue, Jun 11
10:00 Wholesale sales mm

Apr

%

0.0

-1.3

10:00 Wholesale inventories mm

Apr

%

0.2

0.4

13:00 3-Yr Note Auction

bl

32.0

Wed, Jun 12
07:00 MBA Mortgage market index

w/e

638.7

07:00 MBA 30-yr mortgage rate

w/e

%

4.07

13:00 10yr Treasury Auction

bl

21.0

14:00 Federal budget, $

May

bl

-110.0

112.9

Thu, Jun 13
08:30 Import prices mm

May

%

0.0

-0.5

08:30 Export prices mm

May

%

0.0

-0.7

08:30 Retail sales mm

May

%

0.3

0.1

08:30 Initial Jobless Claims

w/e

k

345

346

10:00 Business inventories mm

Apr

%

0.3

0.0

13:00 30-Yr Treasury auction

bl

13.0

Fri, Jun 14
08:30 Current account (Trade Gap)

Q1

bl

-109.0

-110.4

08:30 Producer prices, core yy

May

%

1.7

1.7

08:30 Producer prices, core mm

May

%

0.1

0.1

09:15 Industrial output mm

May

%

0.2

-0.5

09:15 Capacity utilization mm

May

%

77.9

77.8

09:55 U.Mich sentiment

Jun

84.5

84.5

The potential for volatility remains.

 

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