Mortgage Time

Mortgage Market News for the week ending April 20, 2012

Economic Growth Rates Slow

Investors saw little this week to cause much movement in mortgage rates. The Spanish debt auctions received surprising demand, and disappointing US economic results were not weak enough to shift investor sentiment toward safer assets. In the end, mortgage rates finished the week with little change. In a market looking for positive economic momentum, this week's data provided little encouragement. With the exception of Industrial Production, every measure announced reflected a slowdown in its rate of economic growth. The growth rate of manufacturing activity saw the biggest drop. Retail Sales growth slowed from last month and Industrial Production showed no growth for the second month in a row. This fresh data may take on more significance as the Federal Open Market Committee (FOMC) meets next week. Economic growth rates were generally on the rise ahead of the last FOMC meeting. The measures of housing activity released during the week were disappointing as well. The Home Builder Sentiment Index fell for the first time in seven months. March Housing Starts fell 6% from February and Existing Home Sales backed up 2%. The silver lining in all this, though, is that over the last few weeks mortgage rates have moved back to near their historical lows.

Compliments of

Vaughn Monagon
Pacific Residential Mortgage LLC Sr. Mortgage Banker MLO-223367 PHONE: (971) 237-8033 FAX: (877) 788-6750 www.monagon.com vaughn@monagon.com 4949 Meadows Road Suite 150 Lake Oswego, OR 97035 Dreams Approved Daily! NMLS #1477

Also Notable:
Weekly Jobless claims rose to 386K, the highest since early this year Spanish bond auctions saw adequate demand Leading indicators fell to 0.3% from 0.7% last month Regional manufacturing activity slows from March
Average 30 yr fixed rate: Last week: This week: -0.10% -0.01%

Stocks (weekly): Dow: NASDAQ:

13,050 +150 3025 Unch

Events This Week: Manufacturing Slows Retail Sales Rose Jobless Claims Increased Manufacturing Lower

Week Ahead
The big story next week will be Wednesday's Fed meeting. Investors will be trying to determine the likelihood of additional easing. New Home Sales and Consumer Confidence will be released on Tuesday. Durable Orders will come out on Wednesday. Pending Home Sales will be released on Thursday. First quarter GDP, the broadest measure of economic growth, will come out on Friday. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday. To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com To learn more about the newsletter, please call 800-627-1077 All material Copyright Ress No. 1, LTD and may not be reproduced without permission.

Events Next Week: Tues 4/24 New Home Sales Confidence Wed 4/25 Fed Meeting Durable Orders Thur 4/26 Pending Sales Fri 4/27 GDP Sentiment

This email was sent from Vaughn Monagon at Pacific Residential Mortgage LLC. To unsubscribe, email vaughn@monagon.com.