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Mortgage News

Mortgage News


Market Comment - Week of June 13th, 2011

Mortgage bond prices fell last week pushing mortgage interest rates slightly higher. There were large swings throughout the week. Rates were pressured higher Monday morning. Bonds rallied mid week following Fed Chairman Beneranke's comments about weakness in the economy which helped stabilize rates. Unfortunately strong stocks and a weak 30Y Treasury auction Thursday erased the improvements seen Wednesday. Mortgage bonds ended the week worse by about 1/8 of a discount point.

The inflation data this week will be significant. If inflation exceeds estimates on the consumer or producer side we could see a spike in mortgage interest rates. Tame inflation readings are always welcome.

Economic Factors

Economic Indicator

Release Date Time

Consensus Estimate

Analysis

Retail Sales

Tuesday, June 14, 2011

Up 0.4%

Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates.

Producer Price Index

Tuesday, June 14, 2011

Up 0.6%, Core up 0.2%

Important. An indication of inflationary pressures at the producer level. Lower figures may lead to lower rates.

Consumer Price Index

Wednesday, June 15, 2011

Up 0.4%, Core up 0.2%

Important. A measure of inflation at the consumer level. Lower than expected increases may lead to lower rates.

Industrial Production

Wednesday, June 15, 2011

Down 0.1%

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

Capacity Utilization

Wednesday, June 15, 2011

76.9%

Important. A figure above 85% is viewed as inflationary. A decrease may lead to lower mortgage interest rates.

Weekly Jobless Claims

Thursday, June 16, 2011

430k

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

Housing Starts

Thursday, June 16, 2011

520k

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

U of Michigan Consumer Sentiment

Friday, June 17, 2011

74.1

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

 

Oil

Inflation fears tied to rising energy prices remain on the minds of traders. OPEC failed to raise production levels and many are preparing for large price spikes throughout the rest of this year as demand increases and supplies remain the same. Recent forecasts call for prices to skyrocket off the already high levels. That would be a disaster for the wobbly economy. The fate of mortgage interest rates in a scenario like that is even more uncertain. A US representative cautioned that the use of the US Strategic Petroleum Reserve might be necessary to "head off an economic collapse from continued high gas prices."

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

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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.

0 comments • Jason M. Keith - Lending in 5280 • June 13 2011 02:37PM
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