Market Report 6-9-2011, Scott Cone, PrimeLending
Another day, another marketing report to let us know what is happening in the economic world out there. Things are still looking good for rates. We are seeing our best levels for the year. The trend is continuing off the jobless claims report and the decline in mortgage applications. We all know that around here business is booming. It is time to take advantage of some negative economic info. Please feel free to call me if I can help in any way. Here is a success story form last month. I picked up a purchase loan on Thursday, May 19th. The lender that was working on the loan was unable to close it by the contract date. They had been working on the loan since April 5th. We closed the loan on May 31st, but had our package out May 27th. That is a quick turnaround time. Don’t forget about the 3rd
Thursday Expert Agent Academy this coming Thursday. I have had 7 people already RSVP. Please let me know if you want to learn more from Tim Davis about Success in Real Estate and eat a free delicious lunch. Don’t forget to send your featured listing so that we can showcase it. Have a great day!!!!
Market Report 6-9-2011
Initial jobless claims for the week ending June 4 remained above 400k at 427k, slightly higher than the previous week’s 426k (revised higher from 422k). The four week moving average is still improving, inching down to 424k from 426k. The current moving average is an improvement from May and April, but still disappointing given the average of 393k in March. April’s trade deficit of $43.7 was sharply below the $48.9 bln consensus. The trade deficit unexpectedly narrowed as auto and oil imports dropped and exports rose. This is opening the door for an improved Q2 GDP figure if oil prices do not erode too much consumer spending in the quarter. April wholesale inventories rose .8%, slightly short of expectations of a rise of 1.0%. Sales rose .3% which was well below the +1.4% expectation. The downside surprise for inventories was offset by an upward revision to March. Given the strong rise in March sales neither series gives a serious warning of economic conditions. Mortgage rates are at new year-to-date lows in response to the sharp decline in yields following weaker than expected economic news and ongoing worries regarding EU debt. While prepayment risk is increasing, analysts state that mortgage rate levels need to move closer to 4% in order for the Refi Index and prepayment speeds to increase to the peak levels experienced in late summer and into the fall. For the week ending June 9th, Freddie Mac reported 30yr fixed mortgage rates declined to 4.49%. Market still remains stable near the best levels this year which is helping us maintain the bullish trend. The weakness today, although limited, has brought us back around the midpoint from yesterday at 123-195(2.96%). We need to hold at these levels for any chance to retest the highs in the coming sessions and push toward 2.88%. Stocks are up around 80 points on the big board, in turn, mtg backs are currently down 4 ticks in the lower coupons. We wouldn’t expect to see better levels unless equities start to trade off. Again, pricing is still around its highest levels, so taking advantage of that is never a bad thing.
Have a wonderful day and good luck!!!!
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