We offer low interest Modesto home loans for qualified applicants looking for a mortgage in Modesto.
Rates continue to slide
Wednesday, September 03, 2008
As I write this morning trading activity in the mortgage market is thin and sporadic. Mortgage interest rates continue to benefit from a little bout of "flight-to-quality" buying created by capital leaving the stock markets as concerns about the deteriorating health of the global economy begin taking a toll on the forward looking perspective for corporate profits.
Mortgage investors shrugged off this morning's news that July Factory Orders rose a stronger-than-expected 1.3% -- while the June data was revised higher to reflect a gain of 2.1% -- up solidly form the originally reported 1.7% increase. The July number represents the fifth consecutive month for improvement in the factory order data series.
In a separate report the Mortgage Bankers of America reported that mortgage applications rose 7.5% during the week ended August 29th. Refinance applications were up 2.1% while purchase applications climbed by 10.5%. Indexes measuring applications for FHA and VA loan programs jumped 11.7% higher - reaching a level more than double the year-ago mark.
Trading action in the mortgage market will likely be listless into the second-half of the day as investors await the release of the Fed's Beige Book this afternoon at 2:00 p.m. ET. Named for the color of its cover, this publication is a compilation of reports concerning economic conditions in the nation's 12 Federal Reserve Districts. If the Beige Book contains a preponderance of economic "doom and gloom" stories together with convincing evidence of stable to weak inflationary pressure across a broad swath of the country - look for mortgage interest rates to remain steady to fractionally lower into today's market close. The market has already priced-in expectation for weak economic news so if it gets what it was looking for - the overall impact will likely be minimal.
The risk here is that the collective data contained in the Beige Book proves not to be as puny as expected. Should this scenario develop -- look for stocks to rally sharply higher at the expense of an afternoon adjustment from your investors featuring higher mortgage interest rates and lower prices.
I'll provide an update on the overall story contained in the Beige Book as soon as possible following its release this afternoon
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