Mortgage Market Update
Mortgage Market Update- May 13, 2013
It should come as no surprise that once again, good news is bad news for the mortgage market. Jobless claims numbers dropped to levels unseen since January of 2008 and ultimately resulted in mortgage rates ticking slightly upward. For new home buyers, this is not good news although rates are still low. However, with more signs that the economy is in a cycle of slow but steady improvement, the time to refinance may be quickly coming to an end.
The upcoming week
Monday when retail sales were reported, there was more good news for the economy. While most analysts expected a drop in retail sales, we actually saw a slight increase. Several factors contributed to this including lower fuel costs, more automobile sales and better than average sales in clothing. For the rest of the week, we’ll watch for the Producer Price Index (PPI) and the Consumer Price Index which may give us a hint as to potential inflationary action in the months ahead.
There was some unexpected news from overseas which also had an impact on our bond market including China showing a slight decline in production, making it more likely they will see a decrease in their economy. The Euro-Zone finance ministers will be meeting this week to discuss possible bailouts for Greece, Spain and Cyprus after more challenging news began facing these countries threatening the economics of the entire area. Germany also reported better than expected industrial production numbers for the second month in a row which many did not expect.
Thursday we can expect to see data regarding new housing starts. This will be another sign as to whether the current home inventory is keeping up with consumer demand for homes. Watch this number carefully as when combined with other good news, it could result in higher mortgage interest rates.
Because more and more signs are showing an improving economy, including the stock market closing over 15,000 for the first time, the time to hesitate may be passing quickly. If you are considering buying a home or you are considering refinancing, the time to take action is now. As more economic data is released this week and for the rest of this month, the lower levels of mortgage interest rates we are currently enjoying may soon be a distant memory. Core Mortgage Financial is here to help you get the best possible mortgage rates that are available today. Call us and we’ll help you through the home mortgage application process and lock in today’s lower rates before the rates spike too much and potentially make purchasing or refinancing an impossibility.