San Francisco Mortgage News

Market Update July 26th

As we head into another month end we continue to enjoy interest rates that have not been seen since the 1950′s! Just the other day I had the opportunity to quote a 15 year fixed rate loan (< $417,000) at an interest rate of 3.750% and a 1.000 point cost!  Never in my 26 year career have I ever quoted any type of fixed instrument with a rate less than 4.000%!  If you are a fence sitter and are waiting for the bottom of the market, take a sanity pill, jump off the fence, and lock in a rate TODAY.  Rates may go a bit lower but the risk to the upside is far greater at this time.  Don’t miss out on a great opportunity to take advantage of these rates combined with some very attractive home prices in the Bay Area.

If your interested in seeing a successful businessman’s view of the state of our administration and economy, you may be interested in giving this short video a view! Doing business in China is more stable and predictable than in the US??  Kind of causes you to take pause when you think about it.

This week Treasury will borrow a total of $104B, $4B less than a month ago, in 2 yr, 5 yr and 7 yr note offerings, the demand for the debt is expected to be good but we have noted some minor anomalies in the demand for US debt in recent auctions. That said, traders still expect the auctions will meet with decent demand; if however the demand ever weakens the rate markets will spike higher quickly.

This Week’s Economic Calendar:

Tuesday;

9:00 am Case/Shiller Home price index (+4.0% in May)

10:00 am July consumer confidence index (51.0 frm 52.9 in June)

1:00 pm $38B 2 yr note auction

Wednesday;

7:00 am Weekly MBA mortgage applications data

8:30 am June durable goods orders (+1.0%, ex transportation +0.5%

1:00 pm $37B 5 yr note auction

2:00 pm Fed Beige Book economic report

Thursday;

8:30 am weekly jobless claims (-4K to 460K; continuing claims 4.55 mil frm 4.49 mil)

1:00 $29B 7 yr note auction

Friday;

8:30 am Q2 advance GDP (+2.5% frm +2.7% in Q1)

8:30 Q2 employment cost index (+0.4%)

9:45 am July Chicago Purchasing Mgrs index (56.0 frm 59.1 in June)

9:55 am U. of Michigan consumer sentiment index (67.0 frm 66.5)