The August edition of STAT from the fine folks at Arizona Regional Multiple Listing Service is out. Click HERE to check it out. They have really improved the commentary section. and because they have all the data, it is a very accurate picture of our real estate world. All good news.
From Stuart Crawford at V.I.P. Mortgage:
the roller coaster ride the prior week, last week’s interest rate
market was one of the quietest weeks in a very long time. While last
week contained a Fed meeting, Employment report, and GDP data, there was
very little significant economic news, and mortgage rates barely
In addition to a lack of major economic data, another
reason for the limited volatility was that the message conveyed from the
Fed was very consistent. The largest influence on mortgage rates in
recent months has been shifting expectations for future Fed policy.
According to the Fed officials that spoke during the week, the Fed
expects to begin to taper its bond buying program later this year. The
exact timing will depend on future economic data, and investors
currently expect that the tapering will begin in September or October.
This means that the reaction to major economic data likely will continue
to be exaggerated, as we saw on several occasions last week.
Obama laid out his plan for restructuring Fannie Mae and Freddie Mac.
It is very similar to what is being proposed in the Senate, so there
were no big surprises. The primary component of the plan is to shift
credit risk on mortgages from the government to the private sector.
There was no timetable provided, but any changes are expected to take
years to come to fruition. The announcement created a lot of headlines,
but did not have an immediate impact on mortgage rates and is not
likely to affect rates anytime soon.
The most significant
economic data this week will be the Retail Sales report. Retail Sales
account for about 70% of economic activity and will be released on
Stuart can be reached at 602.710.8975
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