Weekly Mortgage Newsletter Week of July 3, 2011 Mortgage Market Commentary
The economy got some much needed good news last week with the ISM Manufacturing Index posting an increase. Expectations had been for a drop in the Index, but the surprise increase revealed that manufacturing still has some steam left, and fears of a double-dip recession were reduced. Various financial moves in Europe also reduced some international uncertainty, which helped pull more money out of US Treasuries. While all this is good news, it will put some additional upward pressure on rates as we move into the summer. Unfortunately, measures of consumer attitudes continue to be depressed as the job market and the housing market continue to seek firm ground. This week will likely start with mortgage rates trending upward. If the ISM Services index also surprises on the high side, we could see rates continue to trend upward. The week ends with the allimportant Employment Report. Jobs will again be the focus of the market, and the more jobs that have been created, the more we’ll see mortgage rates, and most interest rates moving upward.
Homeownership Still Part of American Dream While the latest recession has hammered the American home owner with lower home values, we still believe that owning a home is an important part of the American Dream. In a survey released last week by the New York Times and CBS News, almost nine in ten Americans affirmed that belief, and we seem to want it to stay that way. 45% of us want the government to do more to improve the housing market, and 53% want mortgage assistance for those struggling.
Stock Market Trend Dow Jones 13,000.00 12,750.00 12,500.00 12,250.00 12,000.00 11,750.00 7 -Apr
Mortgage Rate Watcher 15 Day Rate Trend 30 Day Rate Trend Market Volatility
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Fear not that thy life shall come to an end, but
rather fear that it shall never have a beginning.
4.75% 4.25% 3.75%
John Henry Newman
3.25% 2.75% 4/7
10 Year Treasury Note Trend 3.75
Private Mortgage Banker 3.50
3.00 2.75 7-Apr
10 Year Treasury Note
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