August 22nd, 2014 3:45 PM by Jonathan White
Mortgage Market News for the week ending August 22, 2014
President and CEO
Mortgage Broker | NMLS ID: 3443
Blue Door Mortgage, LLC
Co. NMLS MB2218
20 Walnut Street
Wellesley, MA 02481
Housing Data, and the Fed
concerns about the conflict in Ukraine caused investors to shift back to
riskier assets early this week, reversing much of the improvement in
rates from the prior week. Stronger than expected housing data and
slightly more hawkish comments from Fed officials also were
negative for mortgage rates. As a result, mortgage rates ended the week a
data released this week reflected nice improvement. July Existing Home
Sales increased 2% from June to the highest level since September 2013.
The inventory of existing homes for sale rose to a 5.5-month
supply and is 6% higher than one year ago. The Chief Economist of the
NAR suggested that stronger job gains and "improving inventory
conditions" have been boosting sales activity.
Starts and Building Permits also exceeded expectations. The August NAHB
Housing Index showed that home builder confidence increased to the
highest level since January.
from the July 30 Fed meeting released this week contained no major
surprises, but they were a bit more hawkish than expected. The big debate
among Fed officials concerned the amount of slack in the labor
markets. The Minutes noted that the labor market has improved more
quickly than expected over the past year and that labor market conditions
have moved significantly closer to "normal in the longer run".
Still, most Fed officials believed that it was too soon to move
forward the expected timeline for fed funds rate hikes.
in Ukraine will continue to influence mortgage rates next week. In the
US, New Home Sales will be released on Monday. Durable Orders will come
out on Tuesday. Pending Home Sales and revisions to second quarter GDP
will be released on Thursday. Core PCE inflation and Personal
Income are scheduled for Friday. In addition, there will be Treasury
auctions on Tuesday, Wednesday, and Thursday.
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