Cari Anderson's East Bay Mortgage Update for August 27th 2010
Economic News: A wild week in the markets ended with a big rally in the Stock Market and a selloff in the Bond Market. The week's economic reports included: Existing Home Sales, New Home Sales, Durable Goods Orders, Jobless Claims and Gross Domestic Product and Consumer Sentiment. Although there were a few positives in some of the data the overall picture was disappointing and the markets were looking a little bleak at the start of trading Friday. The markets began to rally shortly after Federal Reserve Chairman Ben Bernanke signaled in his Jackson Hole Wyoming speech that the FED is willing to do more to support the economic recovery.
Mortgage Markets: Both the Bond and Mortgage Backed Securities markets came under pressure today and rates ended a bit higher than yesterday's closing levels. Many banks had two mortgage rate changes for the worse as the debt markets eroded throughout the day. Overall, rates are still (and will probably remain for the foreseeable future) at spectacular levels.
Next Week's Reports: Monday: Personal Income & Outlays. Tuesday: Case-Shiller Home Price Index & Consumer Confidence. Wednesday: ADP Employment Report, ISM Manufacturing Index & Construction Spending. Thursday: Jobless Claims & Pending Home Sales Index. Friday: Employment Situation.
Stay tuned for the Next East Bay Mortgage Update...
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Economic News: While there is really nothing to speak of on the economic calendar today there were a few reports yesterday. While slipping a little in June, the Industrial Production Report showed nice gains across most sectors for the month of July. Production rose 1% in July beating expectations of a .6% increase. Capacity Utilization rose to 74.8% beating the consensus of 74.5%. The Producer Price Index (PPI) came in right on consensus for the month to month measurement while rising 4.1% year over year. Lower energy prices coupled with higher food prices contributed to the report. The PPI, less the volatile food and energy segments, rose a modest 1.5% from last year. Finally, Housing Starts rose 1.5% in July, which is good news, while the estimated annualized units came in at 546,000. The market was expecting 565,000.
Economic News: Thursday's Jobless Claims numbers came in well above consensus at 484K which is the highest level since February. In contrast the four week moving average actually fell 118K. This morning the Consumer Price Index (CPI) data was released showing that energy led to a slight increase in inflation. Taking out the volatile food and energy segment the index only rose a muted .10%. Auto sales led the way in a rebound in the Retail Sales numbers. On a year over year comparison retail sales were 5.5% higher for the July reporting period. Finally, Consumer Sentiment came in at the high range of expectations and showed a nice gain over the July report.
Economic News: No real economic news to report for today and a fairly light calendar for the rest of the week so enjoy the "Dog Days of Summer" as many are "Out to Lunch" for the next couple of weeks. Fannie Mae has introduced a new website 
er temperatures around here in the high 80s, most of the parks also have water features to cool the kiddos down. A few parks even have newly updated play structures.
Economic News: While we have a busy week ahead for economic reports we just have the New Home Sales numbers for today. There was a rebound from the very soft report for May and the June figures came in at the high range of consensus with an annualized rate of 330,000 units. While the numbers are still soft it was nice to see a rebound from the May numbers. This week the US Treasury will be auctioning $104 Billion of notes on Tuesday, Wednesday and Thursday. The results of these auctions could have an impact on interest rates.
Economic News: Yesterday brought us the Jobless Claims figures. Initial Jobless Claims rose 37,000 to 464,000 for the July 17th week. The four week moving average did improve a bit from the last report which is good news. The National Association of Realtors ® reported Existing Home Sales fell 5.1% for the month of June but this was better than the consensus estimates. Supply also rose to 8.9 months from the prior reading of 8.3 months.
Economic News: The only news released today was the Personal Income & Outlays report. Personal Income showed a nice gain in May as well as a 1.6% increase in the year over year numbers. Month over month consumer spending rose slightly and showed a 4.6% increase over the same time period last year. One confusing note on the extension of the Home Buyer Tax Credit is that discussions will begin again after the Fourth of July weekend. The only problem is the uncertainty for buyers who are unable to close escrow by this Wednesday, which was the original deadline.
Economic News: On Wednesday the Mortgage Bankers Association released figures noting that purchase applications as of June 4th were 35% lower than four weeks ago. There seems to be a bit of softness following the expiration of the tax credits. Thursday's Weekly Jobless Claims came in at the high end of expectations and remained stubbornly above the 450,000 level. The continuing claims numbers were taken as a positive though falling by 255,000 reaching the lowest level since late 2008. This morning's Retail Sales results were a little disappointing with May's numbers coming in far below the analysts' estimates and hopefully this is just a pause as the figures have steadily improved over the last few months. Finally, Consumer Sentiment beat estimates and the index climbed to the highest level this year. Good News!