Mortgage Market Update
Mortgage Market Update, November 25, 2012
This weeks bond market turned out to be a sleeper for two reasons, first of all, the markets were closed on Thursday for the Thanksgiving holiday and from all accounts, many mortgage lenders simply took Friday off and didn’t really participate in the market. There were some notable happenings this week though none of them made any significant changes in the bond market. Early in the week, bond prices edged up slightly but in the end, the overall mortgage market remained flat for the week.
The news of the week
There was not a lot of news made this week since most of the numbers came in within the expectations of the market. However, this isn’t to say that the changes won’t be felt in the longer term bond market since this weeks trading was sluggish thanks to the holiday.
- Ben Bernake speaks – Fed Chairman Ben Bernanke spoke at the Economic luncheon on Tuesday and in case anyone forgot he reminded everyone of the pending fiscal cliff. Gold prices took a hit as he reminded everyone that the fiscal cliff could have devastating economic impact. It’s important to keep in mind that Chairman Bernake’s term is scheduled to end in 2014. He has left the impression that the bond buying spree he is on will continue unabated for the near future. However, once he leaves, the Fed is liable to change their policies.
- Consumer Sentiment – University of Michigan’s Index of Consumer Sentiment came in earlier this week and didn’t really show much change. In fact, the change was only ten basis points, rising slightly to 82.7 percent. The preliminary report showed that the potential existed for this rate to be in the area of 84.9 percent so it did come in below expectations.
- Unemployment Claims – The unemployment claims came in on Wednesday and did not show a lot of change although the numbers were slightly better than expected. Unemployment applications fell 41,000 from the prior week. Keep in mind that Hurricane Sandy did play a role in the prior weeks numbers so we may continue to see some decline in this number which is good for the overall economy. It is also notable that the
This continues to be an ideal time to consider a new mortgage or to consider refinancing. The rates are holding at the lower end with five year adjustable mortgages showing the lowest rates, slightly lower than last week . If you’re considering buying a home or refinancing an existing mortgage, Core Mortgage Financial can help you find a program that will suit your individual financial circumstances. Keep in mind that once the solution is found for the “fiscal cliff” that bond prices are liable to tick up as investors move back to the stock market.
Disclaimer: Mortgage Market update is for November 19-23, 2012. This article is for informational purposes only. The mortgage market update should not be used for rate lock guidance.
NMLS #1743702 Rates, Programs, Guidelines are subject to change without notice