“OML” Mortgage Market Update

It was another good week for mortgage rates. Concerns about the level of global economic growth and about the progress of reforms in Europe were favorable for mortgage rates, which ended the week lower.

Nearly all of the major economic data released last week reflected slower economic growth. In the US, GDP, Durable Orders, and Chicago PMI manufacturing all were significantly weaker than expected. The news was similar in Germany and Japan. It was reported that China is considering another round of stimulus to combat slowing economic growth. Weaker growth reduces future inflationary pressures, which is positive for mortgage rates.

The uncertainty in Europe increased last week as protests in Spain and Greece highlighted the resistance to austerity measures in troubled countries. Spanish officials released a 2013 budget this week which included significant spending cuts and riots resulted. Measurement of the progress of reforms in Greece by international inspectors was postponed until after the November 6 US elections. In short, investors are still uncertain that unpopular austerity measures will be put in place by political leaders in troubled countries. The result is a shift to relatively safer assets, which also is positive for mortgage rates.

The biggest US economic report this week will be the important Employment data on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Before the employment data, ISM Manufacturing and Construction Spending will be released on Monday. ISM Services will come out on Wednesday. The detailed Minutes from the September 13 Fed meeting will be released on Thursday. News from Europe, particularly Spain, is likely to influence US mortgage markets as well.

Give Donna, Pete, Cody or Drew a call today to discuss rates & get your buyer “Pre-Approved”.

You can reach any/all of us at 918-592-6000.

Thank You For Your Partnership.

Make It A Great Week!

Advertisements
This entry was posted in Oklahoma Mortgage Lenders. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s