Market Recap
Market Recap
August 19 2013
New Homes Continue to Heat Up: |
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Two separate reports were released that showed continued growth in the New Home sector:
Home Builder’s Index: “Builder confidence continues to strengthen along with rising demand for a limited supply of new and existing homes in most local markets,” noted NAHB Chief Economist David Crowe. Housing Starts: Regionally, combined housing starts activity posted solid gains of 40.2 percent in the Northeast, 25.4 percent in the Midwest and 7.2 percent in the West, respectively, in July, while the South posted a 7 percent decline. Even an experienced holder man may make best online cialis mistakes while having sex with their partner. It is important that you only chose an online pharmacy that is legitimate. cheap super cialis Now they are thankful to the medicine itself but also extended to the manufacturing and packaging discount viagra levitra unit. However, the fact is that these methods are prone to sharing needles for injecting themselves with cheap sildenafil the drug, they can also contract HIV and AIDs. |
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What Happened to Rates Last Week?
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Mortgage backed securities (MBS) lost -182 basis points from last Friday’s close which caused 30 year fixed rates to move upward. Mortgage rates hit their second highest level in 2013. We had a very busy week with a large amount of economic data that was released. But most of the data including Retail Sales, PPI and CPI were all close to market expectations and didn’t really impact rates. But we did have a much better than expected Initial Weekly Jobless Claims report and that helped to pressure MBS (bad for rates). The preliminary reading for the Consumer Sentiment Index was much weaker than expected and normally would have helped rates, but the market was under too much pressure from two big factors. And those two factors are: Strength in Europe and speculation that the Federal Reserve Bank would begin to decrease their monthly bond purchases in September. And those two factors are likely to be the major driving force in mortgage rates this week too. |
