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Home Mortgage Market Newletter-February 13th, 2...

Mortgage Market Newletter-February 13th, 2012 Dana Bain Premiere Mortgage Services Inc. 978-422-2311

http://www.bainmortgage.com/MortgageMarketWeekInReview

Newsletter-February 13th, 2012
Provided by
Dana Bain & Robin Dunbar Bain

Dana Bain
Premiere Mortgage Services
www.BainMortgage.com

11 Malvern Hill Road
Sterling, MA 01564
Phone: (978) 422-2311
Fax: (978) 422-2313
E-Mail: dana@bainmortgage.com

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Market Comment

Mortgage bond prices were only slightly higher last week which kept mortgage interest rates in check. The Greek debt restructuring talks dominated trading. Greece was pushed to enact austerity measures in an effort to restructure their current debt and avoid default but those talks stalled without any action and default fears continued as of late Friday. Lower than expected weekly jobless claims resulted in a spike in rates Thursday morning. Weaker than expected consumer sentiment data, considerably weaker stocks, and news that the S&P downgraded several Italian banks Friday helped bond prices recover. Mortgage bonds ended the week unchanged to better by 1/8 of a discount point.

LOOKING AHEAD

Economic
Indicator

Release
Date & Time

Consensus
Estimate


Analysis

Retail Sales

Tuesday, Feb. 14,
8:30 am, et

Up 0.1%

 Important.A measure of consumer demand.Weakness may lead to lower mortgage rates.
Industrial Production

Wednesday, Feb. 15,
9:15 am, et

Up 0.2%

 Important.A measure of manufacturing sector strength.A lower than expected increase may lead to lower rates.
Capacity Utilization

Wednesday, Feb. 15,
9:15 am, et

77.9%

 Important.A figure above 85% is viewed as inflationary.Weaker figure may lead to lower rates.
Fed Minutes

Wednesday, Feb. 15,
2:00 pm, et

None

 Important.Details of the last Fed meeting will be thoroughly analyzed.
Weekly Jobless Claims

Thursday, Feb. 16,
8:30 am, et

355k

 Important.An indication of employment.Higher claims may result in lower rates.
Housing Starts

Thursday, Feb. 16,
8:30 am, et

640k

 Important.A measure of housing sector strength.Weakness may lead to lower rates.
Producer Price Index

Thursday, Feb. 16,
8:30 am, et

Up 0.2%,
Core up 0.2%

 Important.An indication of inflationary pressures at the producer level.Weaker figures may lead to lower rates.
Philadelphia Fed Survey

Thursday, Feb. 16,
10:00 am, et

 6.9 Moderately important.A survey of business conditions in the Northeast.Weakness may lead to lower rates.
Consumer Price Index

Friday, Feb. 17,
8:30 am, et

Up 0.3%,
Core up 0.2%

 Important.A measure of inflation at the consumer level.Weaker figures may lead to lower rates.
Leading Economic Indicators

Friday, Feb. 17,
10:00 am, et

 Up 0.3% Important.An indication of future economic activity.A smaller increase may lead to lower rates.

Fundamental Week

The abundance of fundamental data this week provides a good opportunity for mortgages to improve. If the data shows weakness in the economy with little or no inflationary pressures then it is possible for mortgage bonds to rally resulting in mortgage interest rate decreases. However, if the data shows that the economy continues to rebound or any significant signs of inflation, mortgage bonds may fall pushing mortgage interest rates higher.

Mortgage interest rates remain historically favorable despite some recent increases. Now is a great time to avoid the uncertainty surrounding continued market volatility. Remember, the future is uncertain with so much global economic instability. Euro troubles have helped rates here at home. Any signs of stability in that region could reverse the flight to quality buying of US debt that has helped rates stay low. Caution is key.



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MORTGAGE MARKET IN REVIEW Newsletter-February 13th, 2012

Dana Bain Premiere Mortgage Services Inc. www.BainMortgage.com 978-422-2311

Posted Monday Feb 13