From Stuart Crawford at V.I.P. Mortgage, Inc.:
"Last week was what I would determine as “boring” in the mortgage backed securities market. After weeks containing the highest level of significant economic events, investors took a breather last week. The economic data released throughout the week contained few surprises, and mortgage rates ended the week with little change.
Between the prior week's Fed meeting and this week's European Central Bank (ECB) meeting and U.S. Employment report, investors have a great deal of information to digest. Albeit, last week’s news contained little to cause investors to shift their outlook for the performance of the economy. Durable Orders, Jobless Claims, and revisions to second quarter GDP all came in very close to the consensus forecasts. While there were several volatile sessions during the week, the increases offset the decreases, and the week was essentially a “wash”.
The housing data released continued to be encouraging, with August New Home Sales jumping 18% from July to the highest level since May 2008. Existing Home Sales (which include roughly 90% of the market) did decline slightly in August, but this followed four straight months of gains. With mortgage rates remaining relatively low, home sales are near the highest levels of the year.
This week, there will be a European Central Bank (ECB) meeting on Thursday. The policy announcement from the ECB likely will have an influence on mortgage rates. In the U.S., the important monthly Employment report will be released on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month (hence having the largest impact on rate movement). "
Stuart can be reached at 602.710.8975