Walden Mortgage Group's Weekly Newsletter

08/03/10 by Milestone Realty Consultants

Home Prices Increase Again

Single-family home prices rose more than expected in May according to the new release of the Standard and Poor's/Case Chiller home price index.

The 20-city composite price index rose 0.5% in May and April was upwardly revised to an increase of 0.6%.  Economists had been expecting a smaller gain in the range of 0.2%.  While these monthly increases appear small, they do indicate a trend towards housing stability after the bottom in 2009.  The index showed a 4.5% increase on a year-over-year basis and it is the 14th straight month of improvement in this report.

What Happened to Rates Last Week

Mortgage backed securities (MBS) gained +66 basis points last week which caused 30 year fixed rates to decrease for both government and conventional loans.  The gains in mortgage backed securities (the only thing 30 year conventional mortgage rates are based on) were the result of concerns about the stability of our economic recovery.  While we had a week of stronger than expected housing data across the board, the market reacted to a lower than expected economic growth rate (GDP) and deflationary concerns. 

What to Watch Out For This Week

The following are the major economic reports that will hit the market this week.  They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages.  We will be watching these reports closely for you and let you know if there are any big surprises

Date ET Release For
2-Aug 10:00 Construction Spending Jun
2-Aug 10:00 ISM Index Jul
3-Aug 8:30 Personal Income Jun
3-Aug 8:30 Personal Spending Jun
3-Aug 8:30 PCE Prices - Core Jun
3-Aug 10:00 Factory Orders Jun
3-Aug 10:00 Pending Home Sales Jun
3-Aug 14:00 Auto Sales Jul
3-Aug 14:00 Truck Sales Jul
4-Aug 8:15 ADP Employment Change Jul
4-Aug 10:00 ISM Services Jul
4-Aug 10:30 Crude Inventories 31-Jul
5-Aug 8:30 Continuing Claims 24-Jul
5-Aug 8:30 Initial Claims 31-Jul
6-Aug 8:30 Nonfarm Payrolls Jul
6-Aug 8:30 Nonfarm Payrolls - Private Jul
6-Aug 8:30 Unemployment Rate Jul
6-Aug 8:30 Hourly Earnings Jul
6-Aug 8:30 Average Workweek Jul
6-Aug 15:00 Consumer Credit Jun

It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets.  Just leave it to us, we monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.  

Mike Dunn, Holleigh Sharp & Jeff Sharp
Walden Mortgage Group
Office: (859) 514-4444