Brentwood TN Real Estate and Homes:Finance Market Update- Wk of June 16th, 2008
Brentwood TN Homes
Mortgage bond prices fell pushing mortgage interest rates higher. Inflation fears were fanned once again by Fed Chairman Bernanke with warnings that the Fed may have to begin raising rates sooner than most analysts expected. Stronger than expected retail sales figures piled on an already battered mortgage bond market pushing bond prices lower and rates higher. Oil prices remained volatile, which continued to fan inflation fears. For the week, interest rates on government and conventional loans rose over a full discount point.
Economic Factors
Economic Indicator
Release Date Time
Consensus Estimate
Analysis
Producer Price Index
Tuesday, June 17, 2008
Up 1.0%, Core up 0.2%
Important. An indication of inflationary pressures at the producer level. Decreases may lead to lower rates.
Housing Starts
Tuesday, June 17, 2008
Down 5.1%
Important. A measure of housing sector strength. Larger than expected decreases may lead to lower rates.
Industrial Production
Tuesday, June 17, 2008
Up 0.1%
Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.
Capacity Utilization
Tuesday, June 17, 2008
79.7%
Important. A figure above 85% is viewed as inflationary. A decrease may lead to lower mortgage interest rates.
Leading Economic Indicators
Thursday, June 19, 2008
Unchanged
Important. An indication of future economic activity. Weakness may lead to lower rates.
Philadelphia Fed Survey
Thursday, June 19, 2008
None
Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.
Weather
The mortgage interest rate markets are subject to an enormous number of factors. Most analysts agree that weather can have an effect on market activity. Although the effects are seldom long lasting, they can be quite significant.
.*Courtesy of Tonya Esquibel, WR Starkey Mortgage Franklin TN* permission to re-publish.
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, there is no guarantee it is not without errors.
Vanessa StaletsBrentwood TN Real Estate