Economic News
If you are unable to view the message below, please click here.
Kenton Becker
Loan Officer
Office: (206) 423-2552
Email Me
Visit me online
NMLS #123961 ,
Washington #MLO-123961

Events Last Week:

Durable Orders Up
Confidence Fell
New Home Sales Down
Manufacturing Mixed

Events This Week:

Mon 4/1
ISM Manuf

Wed 4/3
ISM Services

Thur 4/4
ECB Meeting

Fri 4/5




landhome landhome

Cyprus Reaches Bailout Deal

It was a relatively quiet last week. Mixed US economic data had little impact. Events in Europe were the main influence on mortgage rates. Investors grew more concerned that uncertainty in Europe could slow the pace of global economic growth.

The bank problems in Cyprus raised broad questions about the relationship between the troubled countries and the stronger countries in the European Union (EU). Early in the week, Cyprus reached an agreement to receive an EU bailout package for its banks. The terms of the aid highlighted the growing reluctance of Germany and the other healthier countries to use taxpayer funds to provide aid to the weaker countries. Investors are concerned that this may slow the implementation of unpopular reform measures intended to boost economic growth in the troubled countries. Adding to the uncertainty, Italian leaders have made little progress in forming a coalition government, making it very difficult for the third largest country in the EU to do anything to improve its economic situation.

So why is political and economic uncertainty in Europe positive for US mortgage rates? Since US companies conduct business in Europe and export to Europe, slower growth there will be a drag on the US economy as well. This results in reduced expectations for future inflation, which is good for mortgage rates. In addition, the duration of the Fed's MBS and Treasury purchase program depends on the strength of the US economy and the labor market. Weaker growth and lower inflation could justify Fed purchases for a longer period of time, providing an extra benefit for mortgage rates.

Also Notable:
  • Fourth quarter GDP growth was revised higher to 0.4% from 0.1%
  • February Pending Home Sales decreased slightly from January
  • The Fed's Dudley stated that the Fed should remain highly accommodative
  • Italian borrowing costs rose to the highest level in five months


Average 30 yr fixed rate:
Last week: -0.02%
This week: -0.03%
Stocks (weekly):
Dow: 15,575 +75
NASDAQ: 3,260 +20

This Week

The biggest 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 will be released on Monday, and ISM Services will come out on Wednesday. Construction Spending and Factory Orders will round out the schedule. In addition, the ECB meeting on Thursday will be highly anticipated.

©2013 MBSQuoteline

Equal Housing Opportunity Lender. Rates, Program, Fees, and Guidelines are subject to change without notice. Not a commitment to lend. Land Home only conducts business in states we are approved to. Land Home Financial Services, 22525 SE 64th Place, Suite 220, Issaquah, WA 98027. Washington Consumer Loan License #CL-89331. NMLS ID # 89331. Kenton Becker Licenses: NMLS #123961; Washington #MLO-123961. You are receiving this communication because of an existing and/or past business relationship, or because you have consented to receive communications from Land Home. 4-01-13  
301 116th Ave SE Suite 200, Bellevue, Washington, 98004
This is a 1x1 transparent image tracking traffic