Mortgage Market News for the week ending January 11, 2013.
Following last week’s burst of major economic headlines, which were mostly negative for mortgage rates, there was very little market moving news this week. Mortgage rates reversed a portion of last week’s increases, ending the week a little lower.
After last week’s fiscal cliff deal, Fed meeting, and Employment data, this week’s news had little impact on mortgage rates. Very little economic data came out this week, and the results for the Treasury auctions were close to average. A meeting of the European Central Bank (ECB) produced no surprises. In short, after weeks of high volatility, daily mortgage rate movements were relatively small this week.
The much anticipated Qualified Mortgage regulation was released this week by the CFPB. This rule, when first proposed, caused concern in the housing industry for how its requirements might overly restrict mortgage availability. As released, though, it should have very little impact on mortgage availability, and much of what will be required under the regulation (when it becomes effective a year from now) is common practice today.
Also Notable:
• Chinese economic growth data was a little stronger than expected
• As expected, the ECB made no change in rates
• The value of the euro increased to the highest level since April
• Oil prices rose to the highest level since the middle of September
Average 30 yr fixed rate:
Last week: +0.20%
This week: -0.03%
Stocks (weekly):
Dow: 13,500 +100
NASDAQ: 3,125 +25
Week Ahead
The most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of “intermediate” goods used by companies to produce finished products and will come out on Tuesday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Wednesday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, Retail Sales will be released on Tuesday. Retail Sales account for about 70% of economic activity. Industrial Production and the Fed’s Beige Book are scheduled for Wednesday. Housing Starts will come out on Thursday. Consumer Sentiment and Philly Fed will round out the schedule.
All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.