Mortgage Market Update
When the Fed speaks, people listen. This week, minutes from the latest Fed meeting were released indicating that there may be an additional round of quantitative easing coming in September. While the mortgage market continues to be fairly strong, there are other numbers that have concerned the market this month that may have forced the fed to act.
While the latest jobs report showed a slight up-tick in the unemployment rate, many felt that the report was a good news/bad news scenario. However, for the week ending August 18, jobless claims rose 4,000 to 372,000. Unfortunately, this is a five week high.
The gold and oil markets also saw some price increases during this past week with oil topping a three-month high at $98 a barrel. With food prices expected to increase due to the draught, one can expect a slightly bigger boost if oil prices continue to rise. Gold prices are also on the rise, recording the highest prices in the last four months.
The Treasury currently has plans to auction $99 billion dollars in new securities over the next week. The plan is to issue 2-year, 5-year and 7-year bonds. Existing home sales are up two percent and new home sales are up four percent. Should the employment numbers begin to strenghten, one should look forward to seeing these numbers grow since mortagage rates are still relatively low.
This blog is for informational purposes only. Our mortgage market report is our opinion and should not be construed as guidance on rate lock questions. NMLS #1743702