Jeds Financial Update 11.22.13 Market News Interest rates continued their climb on Thursday morning, with the 10 year bond peaking at 2.83% before falling back into the mid 2.7% range late Thursday and Friday. Mortgage rates have generally followed the roller coaster movement. So Whats Happening? After Wednesdays surprise comments by the St Louis Fed President, the market remained very bearish Wednesday afternoon and Thursday morning with the 10 year climbing to a 2 month high of 2.83%, up 0.15% in yield from Tuesdays low. Three of Thursdays economic reports were bad for rates as the initial Jobless Claims number came in down 21,00 from last weeks upwardly revised number (+5000) and well below the estimates. Contrastingly, continuing claims increased a sharp 66,000 although the four week moving average is still down from October. The Producer Price Index came in as expected showing negative inflation overall but the core inflation held steady at a positive 0.2% which would support easing by the Fed. The PMI Manufacturing Index mid month indicator came in above expectations and above the top end of the range. All indicators here are that the economy is gaining strength. With those bits of information and a pessimistic outlook, rates jumped......until the Philadelphia Fed Survey on manufacturing was released a few hours later. The Fed survey for the Philly region was expected stay in the range of last months 19.8 or Septembers 22.3 with the consensus being a reading of 15.5. Instead of the expected 15.5 the number came in at a weak 6.5. With last weeks Empire (New York) report showing a major contraction with a negative reading and this weeks Philly survey showing positive but small growth, indications are that the uptick weve been seeing is slowing dramatically. That was good for rates. What To Expect Next week holds a number of reports before Thursdays holiday close and Fridays limited participation. The market is still bearish and with hedging for the realistically 4 day weekend, all news will be looked at through a raise rates lens. The major players who can make the lower the rates decisions will be watching football on the couch eating turkey sandwiches. Lock now, the downside is limited for mortgage rates and the upside exaggerated. Apply at CallJedMarquis Good News for Home Buyers and Refinance Candidates The CFPB (Consumer Finance Protection Board) announced it is postponing the implementation of the latest set of changes in the mortgage industry from the previously announced January 12, 2014 until August 2015. Although the new versions of the Good Faith, TIL and HUD closing statement have generally been met with positive reviews and appear much easier to read for consumers than the current forms, the numerous rules changes included in the roll out will have a major impact (believed to be mostly negative) on the real estate and mortgage industries. Those negative rule implementations could severely injury the fragile housing recovery. It appears that after the disaster of the Affordable Care Act roll out, the CFPB has decided to make sure they have it right rather than quick. Most all of both industries are feeling great relief. Next week there will be a Midweek Markets report on Wednesday and no Friday Financials. Have a good weekend. If you have any questions regarding the market news for today please feel free to contact me. Sincerely, Jed Marquis Cell 303 885-1532 Direct 303 493-0517 JedM@libertyhomeloans Regulated by the Division of Real Estate Interest Rate and Economic News for Realtors and Homebuyers 30 Year Fixed RATE: 4.49% APR: 4.548% 15 Year Fixed RATE: 3.375% APR: 3.623% FHA 30 Year Fixed RATE: 4.0% APR: 4.975% Todays Rates The rates quoted in this news letter are based off the following assumptions: Purchase Price : $400,000 Down Payment: 25% Loan Amount: $300,000 Credit Score: 740 Taxes & Insurance Escrowed **All rates are subject to change without notice. FHA based on 96.5% LTV Theres More to a Mortgage than the Payment Jed M NMLS # 274457 CO # LMB100018640 Liberty Home Loans 287 Century Cir. Ste 201 Louisville, CO 80027 720-890-8900 libertyhomeloans NMLS # 324250 Equal housing
Posted on: Fri, 22 Nov 2013 21:56:38 +0000