August 8th, 2014 12:40 PM by Jonathan White
Mortgage Market News for the week ending August 08,
President and CEO
Mortgage Broker | NMLS ID: 3443
Blue Door Mortgage, LLC
Co. NMLS MB2218
Wellesley, MA 02481
Concerns Affect Rates
With a light
slate of economic reports this week, the conflict in Ukraine had the
greatest effect on mortgage rates. Shifting sentiment about the
likelihood of escalation caused some market volatility during an
otherwise quiet week. Mortgage rates ended the week a little lower.
On Tuesday, a
Polish official suggested that Russia is massing troops on the border
with Ukraine to prepare for an invasion. While there has been a lot of
debate about the accuracy of this statement, just the suggestion was
enough to worry investors. The concern centers around how the US and
European nations would respond. Another round of sanctions would
be expected. The level of uncertainty about the outcome of this
conflict is very high.
still struggling to avoid another recession, and trade restrictions with
Russia make this even more difficult. GDP growth in the euro zone has
been just slightly positive for four quarters after several years of negative
readings. Since slower global economic growth reduces future
inflationary pressures, this has been favorable for mortgage rates.
in Ukraine will remain a primary focus next week. The biggest economic
report will be Retail Sales on Wednesday. Retail Sales account
for about 70% of economic activity. Before that, the JOLTS report,
which measures job openings and labor turnover rates, will come out on
Tuesday. 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 Friday, along with
Industrial Production. In addition, there will be Treasury auctions on
Tuesday, Wednesday, and Thursday.
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