Mortgage Market Weekly – Update Apr 6, 2015

In This Issue…

Last Week in Review: The Jobs Report for March was a disappointment, while home values continue to grow at normal levels.

Forecast for the Week: The economic calendar is quiet, but the minutes from the Fed’s March meeting and the beginning of earnings season could cause volatility.

View: Change is inevitable, and communicating change effectively is crucial to success. The four ideas below can help. [Read more…]

Mortgage Market Weekly – Update Mar 9, 2015

In This Issue…

Last Week in Review: February’s Jobs Report was better than expected, while home price gains are at sustainable levels.

Forecast for the Week: Look for news on wholesale inflation, consumer sentiment and retail sales.

View: Spring clean your office space with these easy tips. [Read more…]

Mortgage Market Weekly – Update Mar 2, 2015

In This Issue…

Last Week in Review: Recent housing reports have disappointed, but sales of new and existing homes are up from this time a year ago.

Forecast for the Week: The Jobs Report for February is a must-watch. Also look for news on inflation, personal income and spending, and manufacturing.

View: Boost new ideas and creative thinking with these four tips.

[Read more…]

Mortgage Market Weekly – Update Jan 12, 2015

This Issue…

Last Week in Review: The labor sector continues to improve, while home price gains are stabilizing at more normal levels.Forecast for the Week: Look for key reports on inflation, manufacturing and retail sales.

View: Navigate tax time with ease thanks to the overview below.

Last Week in Review

Take this job and love it. That’s exactly what more people are doing these days, as job growth in 2014 was the strongest in fifteen years and our economy continues to improve.corelogic-home-price-index-2015-01-12 The December Jobs Report showed that 252,000 jobs were created, a touch above expectations. In addition, upward revisions to October and November added another 50,000-plus jobs to what was originally reported for those months. Employers added 2.95 million new jobs in 2014, with an average of 246,000 per month, above the 194,000 per month average in 2013.

Another positive in the report is that the Unemployment Rate came in at 5.6 percent. The head scratcher was a -0.2 percent hourly earnings figure. Hourly earnings are not growing and that is keeping inflation persistently low. One positive about low inflation is that it should benefit Bonds for the foreseeable future, as high or growing inflation can cause fixed assets like Bonds to worsen. Since home loan rates are tied to Mortgage Bonds, low inflation should also help keep home loan rates low for now.

In housing news, CoreLogic reported that its Home Price Index, including distressed sales, rose by 5.5 percent annually in November. After a near 12 percent annual increase back in January 2014, prices have been decelerating, but have stabilized to a more normal 5 to 6 percent growth rate for the last four months.

The bottom line is that home loan rates remain near historic lows, and now is a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients.

[Read more…]

Mortgage Market Weekly – Update Dec 10, 2014

In This Issue…

Last Week in Review: Job growth in November came in far above expectations. How did the markets and home loan rates react?

Forecast for the Week: The second half of the week heats up with news on wholesale inflation, jobless claims, consumer spending and consumer sentiment.

View: Find out why HARD Goals can be the secret to getting from where you are to where you want to be.

Last Week in Review

“Start me up.” The Rolling Stones. The labor sector has kicked into high gear, with job growth in November far exceeding expectations. [Read more…]

Mortgage Market Weekly – Update Nov 10, 2014

In This Issue…

Last Week in Review: The October Jobs Report was mixed, while housing price gains continue to move lower after the highs seen in 2013.

Forecast for the Week: With a quiet economic report calendar ahead, the Stock and Bond markets may play off of each other for direction.

View: Want to make LinkedIn a more effective resource for your business? Check out the tips below.

Last Week in Review

“Every day you may make progress.” Winston Churchill. The labor market has made great strides this year, as the economy has averaged 229,000 new jobs per month in 2014, the fastest pace since 1999. However, key details in the latest report show more progress is needed.

corelogic-home-price-index-nov10The October Jobs Report showed that 214,000 jobs were created, below the 235,000 expected. Of importance to note: a big percentage of the gains were concentrated in retailers, restaurants and bar,  all of which typically increase ahead of the holidays.

On the surface, there was good news as the Unemployment Rate fell to 5.8 percent from 5.9 percent, reaching its lowest rate since July 2008. However, wage growth remains tepid, as hourly earnings rose by only 3 cents, with the year-over-year increase at just 2 percent. And the Labor Force Participation Rate (LFPR) came in at 62.8 percent, still near the lows last seen in 1978. The LFPR measures the proportion of working-age Americans who have a job or are looking for one, and it should be moving higher in a recovery.

In housing news, research firm CoreLogic reported that home prices, including distressed sales, rose at an annual pace of 5.6 percent in September. This was the slowest annual rate since August 2012, and well below the 11.8 percent gain recorded this past February. Housing price gains are definitely trending lower after their meteoric highs last year.

The bottom line is that home loan rates remain near some of their best levels of the year, and now is a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients.

Forecast for the Week

The economic calendar is quiet this week, but the second half of the week features several key reports.

  • Economic news doesn’t begin until Thursday with Weekly Initial Jobless Claims, which have been below 300,000 for eight straight weeks.
  • On Friday, Retail Sales will be released along with the Consumer Sentiment Index.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond on which home loan rates are based.

When you see these Bond prices moving higher, it means home loan rates are improving—and when they are moving lower, home loan rates are getting worse.

To go one step further, a red “candle” means that MBS worsened during the day, while a green “candle” means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Mortgage Bonds improved after the October Jobs Report was released. Home loan rates remain near historic lows and I will continue to monitor their movement.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Nov 07, 2014)

nov10-bonds-chart

The Mortgage Market Guide View…

Why Are You Using LinkedIn?

By David Ackert, AckertAdvisory.com

Being on LinkedIn is all well and good, but unless you know why, you can easily get stuck in an unproductive web of meaningless connections.

For your consideration, here are four LinkedIn goals, along with recommendations on how to achieve them:

  1. Target: LinkedIn is a great way to target potential prospects and allies. Given that targeting relies on introductions from your existing connections, make sure you only accept invitations from people who know you well enough to broker an introduction for you. Targeting someone who’s not in your network? Consider upgrading to a Business Premium or Sales Navigator account.
  2. Attract: If you have a unique practice or specialty that is likely to be sought out, you don’t have to limit your connections in the way a “targeter” would. Accept invitations from anyone who could have access to relevant business opportunities. Join groups that align with your areas of interest and expertise. Statistically, participation in groups is at least three times more likely to drive relevant traffic to your profile.
  3. Broadcast: Trying to make a name for yourself? Connect with anyone whose opinion matters to you. Post content such as articles, blogs and announcements to your feed on a regular basis so that the people in your network become more aware of you. When you post to a discussion group, ask a provocative question that will engage your audience.
  4. Service: If your goal is to use your LinkedIn connections to add value to your clients, make sure you are connected to your clients. Ask them regularly about their problems so you can marry content and connections to their needs. This is a good way to let them know that you are focused on their problems.

Chances are you want to get something out of LinkedIn (besides spam), so decide on your intended outcome and start linking accordingly.

Source: The Ackert Advisory

econ-calendar-2014-1110

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.

As your mortgage professional, I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

Don Parsons
Commerce Mortgage – NMLS 2105
450 Newport Center Drive Suite 350
Newport Beach, CA 92660
2130 Main Street Suite 260
Huntington Beach, CA 92648

Mortgage Market Weekly – Update Sep 08, 2014

In This Issue…

Last Week in Review: The Jobs Report for August came in worse than expected, but Mortgage Bonds and home loan rates hovered near some of their best levels of the year.

Forecast for the Week: Look for news on jobless claims, retail sales and consumer sentiment—all in the second half of the week.

View: Check out these great video conferencing options when face-to-face meetings aren’t possible.

Last Week in Review

Get used to disappointment.” While the Jobs Report for August was a disappointment, hopefully that quote from the classic movie The Princess Bride won’t apply to additional reports later this year. Here are the highlights.

Corelogic-Home-Price-Index_2014-09-05The Labor Department reported that 142,000 jobs were created in August, far below the 223,000 expected and the recent trend of 215,000 plus job creations per month in 2014. Adding insult to the report was a downward revision to June, showing that 28,000 less jobs were created than previously reported.

The Unemployment Rate fell to 6.1 percent from 6.2 percent, but that’s not much of a silver lining considering that the Labor Force Participation Rate (LFPR) also fell to 62.8 percent, matching 36-year lows. The LFPR measures the proportion of working-age Americans who have a job or are looking for one, and it should be moving higher in a recovery. This was not a good report, but historically August non-farm payrolls have been prone to sharp revisions higher as many households and businesses fail to respond to the government surveys. It will be important to monitor this report in the coming months, to see if this report was a one-off, or the start of a disappointing trend in the labor sector.

In housing news, research firm CoreLogic reported that home prices, including distressed sales, rose by 7.41 percent on an annual basis in July, marking the twenty-ninth consecutive month of year-over-year home price gains. However, prices are still nearly 12 percent below the peak set in April 2006.

And in news overseas, the debt crisis in Europe and continued uncertainty in other regions like the Middle East and Ukraine have helped Mortgage Bonds benefit from a safe haven trade. As a result, home loan rates, which are tied to Mortgage Bonds, remain near some of their best levels of the year.

The bottom line is that now is a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients.

Forecast for the Week

Economic reports are few and far between this week, all occurring in the second half of the week.

First up this week is Thursday’s Weekly Initial Jobless Claims, which continue to hover near the 300,000 mark.

Friday brings Retail Sales for August, along with the September Consumer Sentiment Index.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond on which home loan rates are based.

When you see these Bond prices moving higher, it means home loan rates are improving—and when they are moving lower, home loan rates are getting worse.

To go one step further—a red “candle” means that MBS worsened during the day, while a green “candle” means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Mortgage Bonds reached some of their best levels of the year, meaning home loan rates are hovering near twelve-month lows. I’ll continue to monitor them closely.

Chart: Fannie Mae 4.0% Mortgage Bond (Friday Sep 05, 2014)

Mortgage-Bonds_2014-09-05

The Mortgage Market Guide View…

Connecting with Video

Face-to-face conversations are a key component to building and maintaining client and colleague relationships. Sometimes, though, coordinating schedules can get hectic.

If schedules hamper that personal connection – whether it’s across town or across the country – consider using free or low-cost video conferencing. Several easy-to-use choices are available online.

Here are three popular services to get you started. All of them provide live video feeds, public and private chat functions, screen sharing, call-in access, and mobile applications. Pricing varies by number of meeting attendees, but all three provide a free option.

GoToMeeting. Calls for up to 100 people. Basic package provides free meetings for up to 3 attendees. www.gotomeeting.com

Skype. Calls for up to 25 people. Free Skype-to-Skype calls. www.skype.com

WebEx. Calls for up to 100 people. Basic package provides free meetings for up to 3 attendees. www.webex.com

Video conferencing provides a cost-effective, efficient solution for connecting. Plus, the video feed and screen capture provide that “just-like-being-there” feeling, making video conferencing an especially great option for meeting out of town clients who are relocating and appreciate a more personal connection.

As always, please feel free to pass these tips along to your team, colleagues and clients.

econ-calendar-2014-09-08

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.

As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

Don Parsons
Commerce Mortgage – NMLS 2105
450 Newport Center Drive Suite 350
Newport Beach, CA 92660
2130 Main Street Suite 260
Huntington Beach, CA 92648

Mortgage Market Weekly Update – February 7, 2014

job-creations_2014-02-07When it comes to recent Jobs Reports, what has been tough is being good every month, as both January’s and December’s numbers were disappointments. January’s Jobs Report can best be described as lackluster, as employers added just 113,000 new workers. This was well below expectations of 175,000 new jobs. In addition, the number of job creations for December was raised just a paltry 1,000, bringing December’s total to 75,000. November was revised higher to 274,000.

The Unemployment Rate did fall to 6.6 percent, from 6.7 percent. However, this is not necessarily a good metric of labor market health, as the more important Labor Force Participation Rate (LFPR) remains at 63 percent, a 35-year low. The LFPR measures the proportion of working-age Americans who have a job or are looking for one, and it should be moving higher in a recovery.

Also of note, productivity in the fourth quarter of 2013 rose by 3.2 percent, with both the third and fourth quarters the highest since the second half of 2009. Employers are squeezing more out of current workers and may not be on the hunt for new employees given the economic landscape, which is another negative for the labor market. In housing news, research firm CoreLogic reported that home prices, including distressed sales, rose by 11 percent in December 2013 compared to December 2012. December marked the 22nd consecutive year-over-year gain in home prices nationally. However, from November to December, prices fell by 0.1 percent.

What does this mean for home loan rates? Mortgage Bonds and home loan rates have seen some improvement of late, due to some weak economic reports, while Stocks have suffered as a result. But a big question remains as we move ahead in 2014: If economic reports continue to be weak, will the Fed continue to taper its Bond purchases? Remember that the Fed is now purchasing $35 billion in Treasuries and $30 billion in Mortgage Bonds (the type of Bonds on which home loan rates are based) to help stimulate the economy and housing market. This figure is down from the $85 billion in Bonds and Treasuries the Fed had been purchasing last year. The timing of further tapering is sure to impact Stocks, Bonds and home loan rates throughout the year, and it is a key story to monitor.

The bottom line is that now remains a great time to consider a home purchase or refinance, as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions at all for you or your clients.

Forecast for the Week

The economic report calendar is light this week, with reports not beginning until Thursday.

  • Weekly Initial Jobless Claims will be released as usual on Thursday. Claims have been stuck in a tight range the past four weeks.
  • Also on Thursday, look for January’s Retail Sales data.
  • The last report this week will be the preliminary reading on February Consumer Sentiment.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond on which home loan rates are based.

When you see these Bond prices moving higher, it means home loan rates are improving  and when they are moving lower, home loan rates are getting worse.

To go one step further, a red “candle” means that MBS worsened during the day, while a green “candle” means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Mortgage Bonds and home loan rates improved after the weak Jobs Report for January was released. I’ll be watching the news closely this week to see if these improvements continue.

Chart: Fannie Mae 4.0% Mortgage Bond (Friday Feb 07, 2014)

jan2014--bonds-chart

The Mortgage Market Guide View…

Mileage Rates for 2014 If you drive a car, truck or van for work, you’ll want to make sure you know standard mileage rates the Internal Revenue Service (IRS) has set for 2014.

These mileage rates are used to calculate deductible costs for driving an automobile for business, charitable, medical and moving purposes. So when it comes to filing your taxes this year, you’ll need these numbers!

New for 2014

As of January 1, 2014, the standard mileage rates are as follows:

  • Businesses = 56 cents per mile driven
  • Medical or moving = 23.5 cents per mile driven
  • Charitable organizations = 14 cents per mile driven

You’ll notice that the rates for business, medical and moving expenses decreased one-half cent from the 2013 rates.

Make Sure You Qualify

Before you calculate your deduction, make sure you qualify. The IRS reminds taxpayers that they cannot use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

Additional Option

Although the IRS provides the standard mileage rate for ease and convenience, you’re not required to use it. If you prefer, you can calculate the actual costs of using your vehicle instead of using the standard mileage rates.

Remember, if you have questions or concerns, talk to a tax consultant or accountant to discuss your options and unique situation. Please feel free to pass these tips along to your team, clients, and colleagues.

Economic Calendar for the Week of February 10 – February 14

econ-calendar-20140210

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.

As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

In the unlikely event that you no longer wish to receive these valuable market updates, please email: don@donparsons.com

If you prefer to send your removal request by mail the address is:

Don Parsons
Commerce Mortgage
NMLS 2105
450 Newport Center Drive Suite 350
Newport Beach, CA 92660
2130 Main Street Suite 260
Huntington Beach, CA 92648

Vantage Production, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Vantage Production, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

Mortgage Market Weekly Update – August 12, 2013

In This Issue

Last Week in Review: The housing market continues to improve, plus the tapering talk carried on.

Forecast for the Week: A busy week is ahead, with important inflation, manufacturing and housing news being released.

View: Staying sharp is important for today’s busy professionals. Check out the simple tips below.

Last Week in Review

“Every day you make progress.” Winston Churchill. And the housing market continues to progress in the right direction. Read on for details.

corelogic-home-price-index-jun-2011-may-2013Last week, research firm CoreLogic reported that home prices across the U.S. rose by nearly 12 percent from June 2012 to June 2013. By comparison, home prices only rose 3.76 percent from June 2011 to June 2012. In addition, research and analytics firm Clear Capital said that prices rose 9.3 percent in the year ended in July.

The housing markets have turned the corner to greener pastures, but it’s important to note that this pace of growth may be unsustainable. With home loan rates rising over the past several months, this rate of appreciation could slow.

In labor market news, Weekly Initial Jobless Claims rose by 5,000 in the latest week to 333,000, but this was below the 340,000 expected. This followed the Jobs Report for July, which was a bit of a disappointment with less jobs created than expected.

What does this mean for home loan rates? One of the biggest questions on everyone’s mind is: When will the Fed start tapering their Bond purchases? Remember that the Fed has been buying $85 billion of Bonds a month to help stimulate the economy and housing market. This includes Mortgage Bonds, to which home loan rates are tied, and these purchases have helped home loan rates remain attractive.

The Fed has said the rate of their purchases will continue to depend on economic data, and could be increased or decreased accordingly. Last week, several Fed members spoke out in favor of tapering these purchases as early as the Fed’s meeting in mid-September. However, with our economy growing at sub 2 percent, economic data between now and September will be a key factor in this decision.

The bottom line is that home loan rates remain attractive compared to historical levels and now remains a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients.

Forecast for the Week

After last week’s slow calendar, this week features a steady stream of reports.

  • Economic data kicks off on Tuesday with Retail Sales for July. This comes after a decent reading in June.
  • Inflation data from the wholesale-measuring Producer Price Index and the Consumer Price Index will be released on Wednesday and Thursday, respectively.
  • In the manufacturing sector, the Empire State Index and Philadelphia Fed Index will be released on Thursday along with Weekly Initial Jobless Claims.
  • To round out the week, Housing Starts, Building Permits and Consumer Sentiment will be disseminated on Friday.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

When you see these Bond prices moving higher, it means home loan rates are improving — and when they are moving lower, home loan rates are getting worse.

To go one step further — a red “candle” means that MBS worsened during the day, while a green “candle” means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Bonds have improved from multi-year lows in recent weeks. I’ll be watching closely to see if they can improve further.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Aug 09, 2013)

july2013-bonds-chart

The Mortgage Market Guide View…

Brain Breakthroughs

Many people think intellect is a matter settled at birth, and mistakenly believe there’s no way to boost their brain brilliance. But scientific studies prove just the opposite. In fact, small lifestyle adjustments combined with a few mental gymnastics can not only increase intelligence, but also improve general brain health, helping prevent aging disorders, such as Alzheimer’s disease.

According to most neurologists, the key is staying mentally active, whatever your age. The following tips will help boost your mental acuity and increase your intelligence.

All You Have To Do Is Dream. An adequate amount of restful sleep is an important component of brain function (its effect on memory and learning is contested among scientists). Restful sleep provides energy as well as the ability to focus, both vital factors in achieving mental stimulation. Some studies have also shown the reverse to be true, that is, that more mental stimulation during the day gives you better sleep at night.

Jumpin’ Jack Flash Memory. Exercise brings oxygen-rich blood to the brain and regulates blood-sugar levels. Exercises such as aerobics, dance, and martial arts all require memorization and are great for promoting mental stimulation. They also help to develop the rhythm and timing circuitry that runs across multiple regions of the brain.

Playing Those Mind Games Together. Crossword puzzles and Sudoku, board games and card games are all excellent for mental stimulation–now you can add video games to the list. Each type of game makes various demands on brain function such as recall, hand-eye coordination, attention, memory, logic, and pattern recognition. The key here is to keep upping the skill or level of challenge as you progress.

Don’t forget to pass these helpful tips along to your clients and colleagues.

Economic Calendar for the Week of August 12 – August 16

july2013-bonds-chart

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.

As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: don@donparsons.com

If you prefer to send your removal request by mail the address is:

Don Parsons
20250 Acacia Street, Suite 120
Newport Beach, CA 92660

Vantage Production, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Vantage Production, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

Mortgage Market Weekly Update – June 28, 2013

In This Issue

Last Week in Review: A full slate of economic reports was released. But was the news positive?

Forecast for the Week: A holiday-shortened week is ahead, and so is the all-important Jobs Report for June.

View: The retweet is a big part of what makes Twitter an effective marketing tool. Check out 6 easy ways to master getting more.

Last Week in Review

“Feeling groovy.” Simon and Garfunkel. Consumers are certainly feeling more confident these days, as positive economic news tumbles in. But what does this mean for home loan rates? Read on for details.

consumer-confidence-mar-jun_2013-07-01Consumer Confidence, which measures how optimistic or pessimistic consumers are with respect to the economy in the near future, came in at 81.4 in June. This is the highest level since January 2008, when it stood at 87.3. The Consumer Sentiment Index, a similar measure, also came in above expectations for June.

Housing continues to be a bright spot for the economy as Case-Shiller reported that its 20-city home price index rose by 12.1 percent year-over-year in April. In addition, the 2.5 percent gain in the index from March to April was the largest monthly gain ever recorded. New Home Sales also rose 2 percent, coming in above expectations.

But not all the economic news last week was cause for song. The final reading for 2013 first quarter Gross Domestic Product (GDP) came in at 1.8 percent, below expectations and a pretty anemic reading overall. The good news is that this reading is higher than the meager 0.4 percent reading for the fourth quarter of 2012. And in the manufacturing sector, the Chicago PMI (a key regional report) came in lower than expectations and below May’s reading.

What does all of this mean for home loan rates?

[Read more…]