Wednesday, February 15, 2012

Market Update

1.
Before I head out the door to appraise a property in Meade County, I wanted to share this with you all.  The S&P have been in the news a lot lately, but here is another instance of foreign events effecting our market.  Thank you Josh Hay at US Bank for another market update.  
MARKET COMMENT
Mortgage bond prices were only slightly higher last week which kept mortgage interest rates in check. The Greek debt restructuring talks dominated trading. Greece was pushed to enact austerity measures in an effort to restructure their current debt and avoid default but those talks stalled without any action and default fears continued as of late Friday. Lower than expected weekly jobless claims resulted in a spike in rates Thursday morning. Weaker than expected consumer sentiment data, considerably weaker stocks, and news that the S&P downgraded several Italian banks Friday helped bond prices recover. Mortgage bonds ended the week unchanged to better by 1/8 of a discount point.
LOOKING AHEAD
Economic
Indicator
Release
Date and Time
Consensus
Estimate
Analysis
Retail SalesTuesday,
Feb. 14,
8:30 am, et
Up 0.1%Important. A measure of consumer demand. Weakness may lead to lower mortgage rates.
Industrial ProductionWednesday,
Feb. 15,
9:15 am, et
Up 0.2%Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.
Capacity UtilizationWednesday,
Feb. 15,
9:15 am, et
77.9%Important. A figure above 85% is viewed as inflationary. Weaker figure may lead to lower rates.
Fed MinutesWednesday,
Feb. 15,
2:00 pm, et
NoneImportant. Details of the last Fed meeting will be thoroughly analyzed.
Weekly Jobless ClaimsThursday,
Feb. 16,
8:30 am, et
355kImportant. An indication of employment. Higher claims may result in lower rates.
Housing StartsThursday,
Feb. 16,
8:30 am, et
640kImportant. A measure of housing sector strength. Weakness may lead to lower rates.
Producer Price IndexThursday,
Feb. 16,
8:30 am, et
Up 0.2%,
Core up 0.2%
Important. An indication of inflationary pressures at the producer level. Weaker figures may lead to lower rates.
Philadelphia Fed SurveyThursday,
Feb. 16,
10:00 am, et
6.9Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.
Consumer Price IndexFriday,
Feb. 17,
8:30 am, et
Up 0.3%,
Core up 0.2%
Important. A measure of inflation at the consumer level. Weaker figures may lead to lower rates.
Leading Economic IndicatorsFriday,
Feb. 17,
10:00 am, et
Up 0.3%Important. An indication of future economic activity. A smaller increase may lead to lower rates.
FUNDAMENTAL WEEK
The abundance of fundamental data this week provides a good opportunity for mortgages to improve. If the data shows weakness in the economy with little or no inflationary pressures then it is possible for mortgage bonds to rally resulting in mortgage interest rate decreases. However, if the data shows that the economy continues to rebound or any significant signs of inflation, mortgage bonds may fall pushing mortgage interest rates higher.
Mortgage interest rates remain historically favorable despite some recent increases. Now is a great time to avoid the uncertainty surrounding continued market volatility. Remember, the future is uncertain with so much global economic instability. Euro troubles have helped rates here at home. Any signs of stability in that region could reverse the flight to quality buying of US debt that has helped rates stay low. Caution is key.
RATE LINK is provided by Market Information for Mortgage Professionals. Copyright 2012. All Rights Reserved. Mortgage Market Information Services, Inc. The information contained herein is believed to be accurate, however no representation or warranties are written or implied.
CONFIDENTIALITY NOTICE: This e-mail transmission and any attachments may contain confidential or legally privileged information. This information is intended only for the necessary business use of the individual(s) or entity to whom it is intended even if addressed incorrectly. If you have received this e-mail in error, please immediately notify the sender by e-mail at the address shown. You should delete this entire transmission from your files if you are not the intended recipient and you are prohibited from retaining, distributing, disclosing or using any information contained herein. Thank you for your compliance.

1. thedigeratilife.com

No comments:

Post a Comment