Weekly Mortgage Market Update
November 1st, 2008 Categories: Uncategorized
Today’s Market Commentary:
RATES INCREASE SLIGHTLY ON MIXED ECONOMIC DATA
Interest rates increased slightly on the week on a mixed bag of economic data. September New Home Sales actually increased 2.7% and inventories fell
Rates posted on October 31, 2008
to a 10.4 month supply. October Consumer Confidence fell to 38 on expectations that it would fall to 52. September Durable Goods Orders increased 0.8% on expectations that they would fall 1.0%. Third Quarter GDP fell by 0.3% on expectations that it would fall 0.5%. The economy saw its biggest decline since third quarter 2001. September Personal Income was slightly better than expectations and Personal Spending was slightly worse than expectations.
Other news of note included the Fed cutting short term interest rates by 50 basis points at the conclusion of its FOMC meeting on Wednesday. The Fed Funds rate now stands at 1.0%. The Fed stands ready to take this rate to zero if necessary to continue to help the economy.
The Dow Jones Industrial Average is currently at 9,273, up almost 900 points on the week. Crude oil futures are currently at $64.84 per barrel, more or less unchanged on the week.
Next week look toward Mondays ISM Manufacturing Index and Fridays employment report for October as potential market moving events.
