June 18, 2011 rummy

There was a lot of volatility during the middle of the week, but mortgage rates ended nearly unchanged. Weak manufacturing data offset higher than expected inflation readings. Similarly, increased social unrest in Greece early in the week was balanced by renewed hopes on Friday for a quick solution to Greece’s debt problems. The current economic outlook, which includes expectations for tame inflation, has supported low mortgage rates. The monthly inflation reports released this week caused investors some concern, however. The May Consumer Price Index (CPI) rose 0.2% from April, which was above the consensus forecast, and CPI was 3.6% higher…

June 17, 2011 rummy

The U.S. housing market continues its gradual and uneven progress, despite the expiration of the home buyer tax credit. The remarkable rebound in housing activities from the initial drop following the end of the home buyer tax credit this past July adds to the belief that the risk of a double-dip downturn in housing may be disappearing. As the housing market continues to work through the excess supply overhang, a result from the glut of foreclosed properties which is keeping home prices below their long-term trend growth, economists anticipate mortgage rates at or above 6% by the end of 2012…

June 11, 2011 rummy

Little Change in Mortgage Rates While mortgage rates reached a new low for the year during the middle of the week, they ended nearly unchanged. It was a light week for economic data, and demand for the Treasury auctions was close to average, so investors had little reason to alter their outlooks. Economic growth during the first half of the year has been slower than expected, and the consensus economic outlook is for just a modest pick up in growth later in the year, with continued low inflation. This week’s Beige Book confirmed that economic growth is moderate in most…