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

Events Last Week:

Durable Orders Rose
Pending Sales Higher
Income Climbed
Manufacturing Down

Events This Week:

Mon 7/1
ISM Manuf

Wed 7/3
ISM Services
ADP Employment

Fri 7/3
Jobless Claims




landhome landhome

Fed Speeches Drive Markets

It was another incredibly volatile week as investors attempted to determine the impact of last week's Fed announcement on mortgage rates. Early in the week, mortgage rates continued to move higher, but soothing comments from Fed officials caused mortgage rates to reverse direction. After all the daily swings, mortgage rates ended the week a little lower.

A number of Fed officials made speeches, and the common theme was that investors overreacted to last Wednesday's Fed statement. Fed officials were surprised by the magnitude of the increase in yields on Treasuries and mortgage-backed securities (MBS), and the resulting increase in mortgage rates, as demanded by investors. Their comments were effective. MBS prices improved and mortgage rates reversed some of the recent increase.

Based on the results of their weekly survey, Freddie Mac reported that mortgage rates rose last week and did so by a record amount. As mentioned above, rates actually moved lower. The difference comes from the timing of the Freddie Mac survey. Freddie Mac collects its data early each week. The increase they reported last week is really comparing mortgage rates pre-Fed meeting to post-Fed meeting. When MBS prices and mortgage rates are as volatile as they have been recently, the Freddie Mac survey results can be misleading.

Also Notable:
  • Core PCE inflation was just 1.1% higher than one year ago
  • First quarter GDP was revised lower from 2.4% to 1.8%
  • New Home Sales rose to the highest level since July 2008
  • Gold prices dropped to the lowest level in roughly three years


Average 30 yr fixed rate:
Last week: +0.45%
This week: -0.10%
Stocks (weekly):
Dow: 15,000 +300
NASDAQ: 3,400 +75

This Week

The big story will be Friday's Employment report. 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, and it will carry even more weight than normal due to how it will influence Fed policy. Earlier in the week, ISM Manufacturing and Construction Spending will be released on Monday. Factory Orders will come out on Tuesday. ISM Services, ADP Employment, and the Trade Balance are scheduled for Wednesday. Mortgage markets will be closed on Thursday in observance of Independence Day.

©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. 07-01-13  
301 116th Ave SE Suite 200, Bellevue, Washington, 98004
This is a 1x1 transparent image tracking traffic