We are having a busy week of activity in the real estate industry, the stock markets, and the mortgage world.
Tomorrow Ben Bernake is going to be going in front of Congress with some new testimony. According to reports he is going to be discussing and recommending even more regulations on the banking industry. My hope is that this is not going effect the mortgage industry too bad, but I'm sure it can't be that positive.
Today we had a huge sell off in commodity prices across he board. Oil, silver, and gasoline prices where dramatically down on the day, leading many to believe that the market is set for a larger pullback/correction. The reasons for the sell off are the worries about European debt obligations, and a global slow down in demand due to a slowing recovery period. Also today Cisco a major US tech company warned of another weak quarter. This is primarily because about 25% of their business is tied to state and federal spending, and we are starting to see a pull back in this area because they don't have any money.
There was some good news today from the Mortgage Bankers Association in regards to mortgage application movement for the week.
The dip in mortgage rates is lending to some positive movement in mortgage applications according to the Mortgage Bankers Association whose composite index jumped 8.2 percent in the May 6 week. Mortgage applications rose for both purchases, up 6.7 percent, and refinancing, up 9.0 percent. The purchase index has gained about 1/2 percent over the past four weeks which points to badly needed improvement for home sales. Thirty-year mortgage rates, at 4.67 percent in the latest week, have fallen more than 30 basis points over the past month.
|Released on 5/11/2011 7:00:00 AM For wk5/6, 2011|
The next two days look for weekly unemployment numbers tomorrow morning and inflation indicators all coming out tomorrow and Friday morning. Last Thursday's unemployment report was discouraging which could be bad for the market but good for rates assuming inflation is still off in the horizon somewhere.