I s su e            12 ,         Vo lu me                  2 4       /      J u ne           17,          20 11Factors Imp...
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Market Monitor June 17, 2011


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Real Estate data for June

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Market Monitor June 17, 2011

  1. 1. I s su e 12 , Vo lu me 2 4 / J u ne 17, 20 11Factors Impacting Rates this Week The Week Ahead -> The “Keys”Tim McLaughlin - FOMC, Housing Data, and GDP drive the week Europe/Greece Debt Issues: The US financial marketsare extending its high level of volatility as the euro zone debt Date Economic Release Prediction Lastcrisis remains in focus, with growing uncertainty regardingGreeces ability to avoid a sovereign default. Treasuries and 6/21 Existing Home Sales 4.85M 5.05MMortgage Backed Securities are higher throughout the week(prices up/rates down) amid the euro-area debt uneasiness. 6/21 Existing Home Sales (MoM) -4.0% -0.8% The Fed/China: We saw two drivers on Wednesday 6/22 MBA Mortgage Applications - 13.0%have a direct impact on the markets from the Fed. First, pre- 6/22 House Price Index (MoM) -0.2% -0.3%market open, there were a series of hawkish commentsfrom Fed President Fisher (Dallas), in addition to a Chinese 6/22 FOMC Rate Decision 0.25% 0.25%report signaled accelerated inflation, inciting the PeoplesBank of China to raise reserve requirements by 50bps, all of 6/23 Chicago Fed Nat Activity - -0.45which provided a pre-market pop to Fixed Income. 6/23 Initial Jobless Claims - 414KAnd then in the latter half of the day Fed Chairman BenBernanke was on the tape commenting on the US debt 6/23 Continuing Claims - 3675Kceiling, stating it should not be used as a mechanism to 6/23 BB Consumer Comfort - -force budget cuts: “Failing to raise the debt ceiling in atimely way would be self-defeating if the objective is to chart 6/23 New Home Sales 310K 323Ka course toward a better fiscal situation for our nation,” theFederal Reserve chairman said in some of his strongest 6/23 New Home Sales (MoM) -4.0% 7.3%words yet on fiscal policy, a subject on which he is normallycautious. 6/23 RPX Composite 28 day - 0.50%His comments raise the stakes for both sides if they fail to 6/24 Cap Goods Orders 0.5% -2.6%reach a deal to increase the debt limit but are likely toprompt a backlash from Republicans who want spending 6/24 Cap Goods Shipped - -1.7%cuts in return for an increase in the amount the governmentcan borrow. 6/24 Durable Goods Orders 1.6% -3.6%The market, as of late, appears to have rabbit ears around 6/24 ex Transportation 1.1% -1.6%any talks regarding the debt ceiling, and any commentsmade by officials in an authoritative role are impacting the 6/24 GDP (QoQ) – Annualized 1.9% 1.8%markets (positively or negatively) in an exponential fashion. 6/24 GDP Price Index 1.9% 1.9% Takeaways: With all the volatility and uncertainty in the 6/24 Core PCE (QoQ) 1.4% 1.4%marketplace right now (both at home and abroad), that hastranslated into a continuum “flight to quality” trade which has 6/24 Personal Consumption 2.2% 2.2%driven the Fixed Income sector, and mortgage rates inparticular, to their lowest rates of the year. 30 year FixedMortgages in the mid 4% range, 15 year Fixed Mortgages in Q: Does Weichert offer “Premium Pricing” quotes?the high 3% range, and attractive hybrid ARM structures in A: We sure do! Premium pricing is a rate quote thatthe low 3% range (and the high 2% range with points). Been allows you to roll some/all of your closing costs intowaiting to buy and now is the time? Looking for one last your rate. Want more info on making your loan achance to refinance that existing mortgage? Your Weichert low/no cost loan? Ask us how…we can help!Financial Gold Services Manager can help…ask them how! Mortgage Access Corp. d/b/a Weichert Financial Services, Executive Offices, 225 Littleton Road, Morris Plains, NJ 07950. 1-800-829-CASH. NMLS Company ID: 2731. Licensed by the NJ Dept of Banking and Insurance. Licensed Mortgage Banker with the State Dept of Banking in NY and CT. Licensed by the Pennsylvania Department of Banking, Mortgage Lender 21042. Licensed Lender in AK, AR, DE, MD, D.C., GA, ME, MI, MN, WI, IA, IL, IN, LA, VT, FL, WV, RI, KY, NC, ID, MS, NE, WY, OK,TN, WA. Licensed by the Virginia State Corporation Commission, License #ML105. Licensed Mortgage Lender in the Commonwealth of Massachusetts. License #ML1713, Certificate #43155. Certificate of Authority to transact business in CO, SC. Registered Mortgage Lender in TX. Licensed with the Financial Institutions Division in New Mexico, License # 01297. Licensed by the Department of Corporations under the California Residential Mortgage Lending Act. Licensed Mortgage Broker and Lender Ohio. Licensed Loan Broker and Lender Rhode Island. Kansas Licensed Mortgage Company, License #MC.0001229. Licensed by the New Hampshire Banking Department, License # 8714-MB. Licensed Oregon Mortgage Lender License #ML2528. Weichert Financial Services arranges loans with third-party providers. Equal Housing Lender.