Cari Anderson's East Bay Mortgage Update for June 17th 2010
Economic News: Tuesday's Housing Market Index (produced by the National Association of Home Builders) showed weakness in the sector post tax incentives. The index for May was measured at 22 and the initial reading for June is 17. Wednesday brought the Housing Starts, Producer Price Index (PPI) & Industrial Production. The Housing Starts results followed up on the Housing Market Index showing weakness in the Northeast & South while posting positive gains in the Midwest & West. The PPI came in within the expected range signaling no real worries about near term inflation. Industrial Production offset the weak housing numbers with the manufacturing sector continuing a nice three month growth rate. Finally, today's Consumer Price Index mirrored the PPI with muted inflation worries helped by lower prices in the energy sector. Jobless Claims still remain stubbornly high with initial claims rising 12,000 for the week of June 12th to 472,000. The four week moving average, which has been a recent bright spot, weakened compared to the month of May.
Mortgage Markets: The 10 Year Note is rallying this morning with the yield falling to 3.191%. In addition, the Mortgage Backed Securities are doing well today as well. Rates are starting off a little better than yesterday and we are starting to see banks re-pricing for the better as the morning progresses. If you are looking to close on a purchase or refinance in the next 30 days it is a great time to lock in a great rate.
This Week's Reports: Tuesday: Housing Market Index. Wednesday: Housing Starts, Producer Price Index (PPI) & Industrial Production. Thursday: Consumer Price Index (CPI) & Jobless Claims
Stay tuned for the Next East Bay Mortgage Update.
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