Print Newsletter
 

Compliments of

Liz Schneider

Senior Loan Officer | NMLS ID: 728176

Farmers National Bank

NMLS: 773563

Direct/Cell: 440.452.3894Fax: 440.333.0221

www.farmersbankgroup.com
lizaschneider.wordpress.com/

Serving NE Ohio
My business is 100% dependent upon referrals. If you know anyone who may benefit from my services, please pass my name and number along. Thanks in advance for thinking of me!

       

 
 

Strong Demand for US Bonds

 

The economic data released this week contained mixed results and had little impact on mortgage rates. Strong demand for US fixed income securities was the main influence this week, helping mortgage rates end the week a little lower. 

 

There were strong indications this week that foreign investors, most likely in Japan and China, increased their purchases of US bonds, including mortgage-backed securities (MBS). The currencies of Japan and China have weakened recently versus the dollar, and the economic policies currently in place in both countries have caused investors to expect their currencies to weaken further. This makes US bonds more attractive to investors in those countries as the investor not only receives interest on the investment, but also expects appreciation in the value of the investment.

 

After a couple of months of weaker readings, the New Home Sales report released this week was a pleasant surprise. January New Home Sales jumped 10% from December to an annual rate of 468K units, far above the consensus of 400K. This was the highest level since July 2008. Also released this week, January Pending Home Sales posted a slight increase.

 
 

The important monthly Employment report will come out 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 that, ISM Manufacturing, Personal Income, Core PCE inflation, and Construction Spending will come out on Monday. ADP Employment, ISM Services, and the Fed's Beige Book will be released on Wednesday. Factory Orders, Productivity, and the Trade Balance will round out the schedule.

 
 

All material Copyright © Ress No. 1, LTD (DBA MBSQuoteline) and may not be reproduced without permission.

 
All material Copyright © Ress No. 1, LTD (DBA MBSQuoteline) and may not be reproduced without permission.
 
 
View HTML