Realtor, Tennis Player, Titans & Vols Fan, Nashvillian… Live! Work! Play! in Middle Tennessee

Market Comment for Week of July 25, 2011…

leave a comment »

MARKET COMMENT  Mortgage bond prices fell last week, which pushed mortgage interest rates slightly higher. Rates started off on a bad note Tuesday following stock strength and higher than expected housing starts data. Things rebounded a bit Wednesday as European debt concerns dominated the headlines. News that France and Germany reached an agreement Thursday on Greece sent the financial mortgage bond market downward. We saw some negative movements the end of the week tied to significantly stronger stocks. Mortgage bonds ended the week worse by about 1/4 of a discount point.

The Treasury will auction 2Y notes on Tuesday, 5Y notes on Wednesday, and 7Y notes on Thursday. Traders will focus on foreign demand.


• Consumer Confidence; July 26; Consensus Estimate 58.1; Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
• New Home Sales; July 26; Consensus Estimate 288k; Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
• Durable Goods Orders; July 27; Consensus Estimate Up 1.2%; Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates.
• Fed “Beige Book”; July 27; This Fed report details current economic conditions across the US. Signs of weakness may lead to lower rates.
• Weekly Jobless Claims; July 28; Consensus Estimate 415k; Important. An indication of employment. Higher claims may result in lower rates.
• Q2 Advance GDP; July 29; Consensus Estimate Up 1.8%; Very important. The aggregate measure of US economic production. Weakness may lead to lower rates.
• Q2 Employment Cost Index; July 29; Consensus Estimate Up 0.7%; Very important. A measure of wage inflation. Weakness may lead to lower rates.
• U of Michigan Consumer Sentiment; July 29; Consensus Estimate 63.5; Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

NEW HOME SALES  New Home Sales data is compiled monthly by the Department of Commerce’s Census Bureau and is gathered from builders throughout the country. The data represents new home sales for the nation as well as four areas of the country: the Northeast, the Midwest, the South, and the West. Information on the average price of a home, the number of homes for sale, and the supply of unsold homes are also provided. The data is an important indicator because it shows any strength or weakness in the housing sector. The housing sector data is valuable because when consumer spending changes, it appears in this sector first. Consequently, a chain reaction typically occurs. A slowdown in new home sales tends to lead to a slowdown in housing starts, which will continue to affect other indicators possibly continuing the recession, as has been the recent concern of most everyone.

New Home Sales data is often volatile and difficult to predict. Most analysts look at a three-month average in order to see any trends in the growth rate. Surges in the release are often greeted with little more than an average reaction in the bond market. However, the data remains significant in showing the condition of the housing sector of the economy. The housing sector as of late has been a major disappointment but the Fed hopes the low interest rate environment will help.

Source: Todd Kabel, F&M Mortgage; Blog distribution provided by Kenneth Bargers and Bargers Solutions, a proud member of Pilkerton Realtors, residential real estate services located in Nashville, Tennessee


Leave a Reply

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

You are commenting using your 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


Ad, Sales & Marketing.

Rachel Being Chatty

Now featuring 15% more sarcasm.


The Casual Way to Discuss Movies

The Ninth Life

It's time to be inspired, become encouraged, and get uplifted!


The Casual Way to Discuss Movies

The Shameful Sheep

shit storms, shame, and stories that make you cringe

Autoindigo Blog

Fresh news about automotive world. Cars overviews written by experts, pros and cons, features, performance, safety, interior and driving.

Little Fears

Tales of whimsy, humour and courgettes

VR, AR, 3D and Video Glasses Reviews

Woodstock Business Welcome

Welcome Wagon Canada

Blookup Blog

Turn and print all your digital contents, blogs and social networks into amazing real paper books on


Graphic Designer


Sabbles woz 'ere


A town everyone hates, yet no one leaves...

Attila Ovari

Loving Life and Inspiring Others

Augusta Littleton

Nonprofits and Charities

The Home Buyer Class Blog

What to know when buying a home

The Contractor's Cabinet

A Blog On Construction & More


Love, Travel Lifestyle and Destinations


My journey - The good, bad and the ugly


"A Blog worth reading "

john pavlovitz

Stuff That Needs To Be Said

Smart Discount Shop

Discover all the creative and ingenious ways to save money !


4 out of 5 dentists recommend this site


A great site

Vonj Productions

Bringing you love through spirit!

The Dystopian Nation of City-State

A cruel, futuristic vision created by science fiction authors James Courtney and Kaisy Wilkerson-Mills. ©2013-2016. All Rights Reserved. All writings available through Amazon.

Bubba Pigg

South' s Leading Anti- Intellectual: Wealthy in Common Sense and the Wisdom of Selfishness

@TheTexasBroker Blog

Real Estate Sales Houston Texas

The Travelling Pantry

Adventurous, Honest and Wholesome

Top 10 of Anything and Everything!!!

Animals, Gift Ideas, Travel, Books, Recycling Ideas and Many, Many More



William the butler

Serving drinks since 1985


This site is the bee's knees

Plutonium™ Paint

Ultra Supreme Professional Grade Aerosol Paint

Levi's Daily Thoughts

For I know that my Redeemer lives Job 19:25

Covered in Beer

by Thomas Cochran, Known Moron

Natalie Breuer

Natalie. Writer. Photographer. Etc.

Post it Notes from my Idiot Boss

delivered directly to my computer monitor on an all too regular basis...

Late Blooming Entrepreneurs

Making it big in business after age 40