Mortgage bond prices finished the week near unchanged which kept rates in check. Stock strength dominated at the expense of mortgage bonds early in the week. We saw a slight unwinding of the flight to quality which pushed rates lower in the prior weeks. The data was mixed as usual. Headline inflation data was a shock.. Producer prices rose 0.1% versus the expected 0.2% decline. The core, which excludes volatile food and energy, rose 0.4% versus the expected 0.1% increase. Consumer prices were unchanged but expected to fall 0.1%. The core rose 0.3% versus the expected 0.1% increase. Housing starts were a weaker than expected 1099K. Weekly jobless claims were a lower than expected 262K. The Philadelphia Fed business conditions index was down 2.8 as expected. Mortgage interest rates finished the week flat.
Economic data is the number one reason mortgage interest rates move on a daily basis. Data is compiled from numerous sources and comes in two flavors, economic growth and inflation. Some releases are more important than others and thus are more likely to cause wider swings in mortgage rates. Rates move in relation to the deviation from expectations. We have significant releases almost each day of this week which is not common. The potential for mortgage interest rate volatility is greater as a result. Volatility is not always the enemy as we saw the beginning of this year with favorable movements after sentiment changed on looming Fed rate hikes. However, any indication of strength in the data will likely result in higher mortgage interest rates so remain cautious.
Author:Chakits Krulsawat Phone: 702-319-1092 Dated: February 19th 2016 Views: 416 About Chakits: Chakits Krulsawat jumped into the Las Vegas Real Estate scene in 2009. Having negotiated over $20 mi...
About Homes For Sale In Henderson & Las Vegas, Nevada
Chakits Krulsawat Group, The Leading Experts Connecting Clients To The Las Vegas Real Estate Market From Buying To Selling, Providing Accurate Up-To-Date Information, Skilled Analysis And Sound Real Estate Advice. While Maintaining The Highest Level Of Service!
Lusitano Ranch Toll Brothers The Stratford Las Vegas Nevada. Single St
"Chakits is very reliable and does what he says he will do. He takes his job seriously without being pushy. If he doesn't know something he will say he doesn't know but he will also find out and get back with you. He makes you feel very comfortable therefore, you know you can depend on him to get the job done and he did for me."