Connecting Colorado Neighbors-The Foerster Team: March 2011

Monday Morning Mortgage Update


Monday Morning Mortgage Update - Week of March 28th, 2011

Mortgage bond prices fell last week pushing mortgage interest rates higher. Stocks generally showed strength throughout the week, which didn't help mortgage bonds. Reports of Japan stabilizing their nuclear facilities resulted in a reversal of the earlier flight to quality buying of US debt. New home sales data came in weaker than expected which helped rates bounce back a bit mid-week. Unfortunately Fed Official Plosser's comments Friday afternoon sent bonds falling and rates higher. Plosser indicated monetary policy will soon need to reverse course and that the preferred exit strategy would raise rates and reduce the Fed's balance sheet concurrently. Mortgage bonds ended the week worse by about 3/4 of a discount point.

The Treasury will auction 2-year notes on Monday, 5-year notes on Tuesday, and 7-year notes on Wednesday.


Economic Factors

Economic Indicator

Release Date Time

Consensus Estimate

Analysis

Personal Income and Outlays

Monday, March 28, 2011

Up 0.4%, Up 0.6%

Important. A measure of consumers' ability to spend. Weakness may lead to lower mortgage rates.

PCE Core Inflation

Monday, March 28, 2011

Up 0.2%

Important. A measure of price increases for all domestic personal consumption. Weaker figure may help rates improve.

Consumer Confidence

Tuesday, March 29, 2011

70

Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates.

ADP Employment

Wednesday, March 30, 2011

180k

Important. An indication of employment. Weakness may bring lower rates.

Weekly Jobless Claims

Thursday, March 31, 2011

365k

Important. An indication of employment. Higher claims may result in lower rates.

Factory Orders

Thursday, March 31, 2011

Up 2.4%

Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.

Employment

Friday, April 1, 2011

8.9%, 160k

Very important. An increase in unemployment or a large decrease in payrolls may bring lower rates.

ISM Index

Friday, April 1, 2011

61

Important. A measure of manufacturer sentiment. A large decline may lead to lower mortgage rates.

 

Personal Income and Outlays

The personal income and outlays release is a monthly report issued by the Bureau of Economic Analysis (BEA). The data is important because it is thought to provide a solid indication of future consumer demand. The personal income component is primarily a measure of wages and salaries. The outlays component is primarily a measure of spending on goods and services. Together the figures provide analysts valuable insight into consumer economic standing and consumption.

The prior release showed an increase in wages and salaries. Some of that was attributed to a cut in the payroll tax. If that trend reverses future weakness could adversely affect consumer spending and the entire US economy. Decreased or stagnant wages coupled with tighter borrowing restrictions make it difficult for consumers to spend money. It is important to note that no single economic indicator can consistently predict the future of the economy. However, the personal income and outlays report is a closely watched release. The consumer remains a vital component of the US economy.

The release this week has the potential to move the financial markets. Now is a good time to take advantage of mortgage interest rates at their current levels to avoid market volatility.


WR Starkey Mortgage, LLP - A different kind of company...where people come first!


 

6025 S. Quebec Street #110
Centennial, CO 80111 

 

 

 

 

 

 

Jason Keith
Senior Loan Officer

Office: 720-489-0712
e-Fax: 866-445-5694
Cell: 303-263-6135 

jkeith@wrstarkey.com
www.LoansFromJason.com 
NMLSR# 288509
LMB100018303

©2011 Design by WR Starkey Mortgage, LLP NMLSR #2146. This is not a guarantee of financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. Colorado: To check the status of your mortgage loan originator, visit http://www.dora.state.co.us/real-estate/index.html If you would like to be removed from receiving these newsletters, Click Here type REMOVE from Mortgage News.

 


Views and opinions expressed on this site are not necessarily those of Starkey Mortgage.

Jason M. Keith
Senior Loan Officer
LMB100018303
NMLSR # 288509
Cell: 303-263-6135
jkeith@starkeymtg.com

Starkey Mortgage

6025 S. Quebec Street

Suite 110

Centennial, CO 80111

To check the license status of your mortgage loan originator, visit http://www.dora.state.co.us/real-estate/index.htm.

Comment balloon 0 commentsJason M. Keith • March 28 2011 01:12PM
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