Mortgage News:
A Change in Thinking
When you combine the light trading in the stock market with very little market impacting data being released, it was nice to have a non volatile trading week. As indicated in last week's Weekender, this week there were only two significant U.S. economic reports so the usual market hysteria was kept to a minimum.
This week the stock market experience significant gains and once again climbed above the 10,000 mark. Besides the lack of market moving news, the other reason for the gains is the low trading volume. Historically this week has one of the lowest trading volumes of the year. When low trading volume exists, it is possible to have larger moves in the various stock market indices due to the fact that any large trade can have can carry more weight in the movement of the Dow, Nasdaq and S&P.
The Mortgage Bankers Association reported that despite some of the lowest mortgage rates on record, purchase applications continued to drop, however the slide has dramatically slowed down. Purchase applications dropped a small 2.0% which hopefully indicates that purchasing volume is stabilizing. However, we will have to wait and see the application reports in the coming weeks to truly determine the direction of housing.
The MBA also reported a 9.2% jump in refinance applications which continues to indicate that there are many homeowners that have still not taken advantage of all of the previous refinance booms over the last few years.
First time jobless claims were reported to have dropped by 21,000. The stock market loved this news and rallied to a 120 point rise on the Dow Jones Industrial Average.
For the most part, news on the European debt crisis seems to indicate that concern is easing and that Europe is getting it under control. In recent weeks and months, the European debt crisis has been keeping traders on edge making U.S. Treasuries the investment of choice.
Next week the treasury is auctioning off 10YR notes and depending on the demand, that can have an impact on mortgage rates either up or down.
After a restful week of little economic news, next week plans to deliver a slew of economic reports. Buckle Up, it could get bumpy again.
Lebron James decided on going to Miami, lets watch to see how many people now sell their recently acquired MSG stock in hopes of it rocketing up if he came to NY.
Reports due out next week are: