Mortgage Market Update
Those who watch the mortgage market might feel as if they were on a bit of a roller coaster this week. The market responded negatively to earnings news, positively to gross domestic product news (which increased slightly more than expected) and then reacted slightly negatively to the news that consumer sentiment was slightly more negative this month. However, if you think this week was worth watching, you should be prepared for the upcoming week mortgage market update.
Not only is there a host of economic news coming out that will have an impact on mortgage rates, you may also see a change in the trajectory of the Presidential election as a result of some of the news. Here’s what next week looks like:
- Monday financial news will reveal trends in consumer spending. This will be important as it will indicate how consumers feel about the economy overall. The more money people are spending, the more optimism it shows in the overall economy. Monday will also be revealing trends in personal income: As most people are aware, the last few years has shown a downward trend that does not bode well for home mortgages, the less people are bringing home, the less likely they are to consider buying a home.
- Tuesday we can expect a reading from S & P on overall consumer confidence as well as home price indexes. The home price indexes could offer some insight into what is occurring in the home mortgage market. While some areas are showing some decline in new home sales, some believe this may be due to the number of bank owned properties available for sale due to high foreclosure rates.
- Wednesday and Thursday will provide investors and lenders alike with news regading construction spending, factory news and new jobless claim filings. It’s important to note that this past week the new jobless claims were down about 23,000 much of this considered to be seasonal adjustments. These numbers are still reflecting a rather weak job market. Friay of course will be the big day: The new jobs numbers are anticipated to at about the same level as September, an increase of 120,000. Any number lower than this could be devastating for the incumbent while providing fuel for the challenger. It is widely anticipated that the unemployment rate will remain at 7.8 percent.
This weeks overall market did not offer much in the way of mortgage rate changes but next weeks volatility could have an impact. Many experts suggest those who currently have mortgage loan commitments that will be closing in 20 days or less consider locking in their interest rates. Beyond that it’s probably safe to leave your rate floating for the time being. Those who are in need of a mortgage commitment before rates start bouncing around should contact Core Mortgage Financial. We can help you take advantage of the lower rates that are curently available. Keep in mind, the next mortgage report will be coming out just days before the election takes place and the wide range of economic news due out next week may impact not only mortgage rates but the Presidential race as well.
Disclaimer: Our weekly mortgage market update is informational purposes only. The mortgage market update should not be used when considering locking your mortgage interest rate. NMLS #849597