Economic Data Week Sept 28

By Tony Stevenson, SWBC

 Consumer Sentiment and New Home sales climbed, but Durable Goods took a turn for the worse and fell 2.4% as our economic recovery rocks back and forth.

Stocks did take a hit for the 3rd time upon the disappointing data helping cause Mortgage rates to fall about .125% for the week. The Federal Reserve decided to stretch out the pace of a program intended to lower mortgage rates and to help prop up the housing market. It also left it’s key bank lending rate unchanged according to an article in the E-N. The WSJ also reported the same with further explanation that the FED program to purchase Mortgage backed securities will last into early next year. This is surely welcome news to all of those in the Mortgage and Real Estate markets.

Now we wait to see if the first-time-homebuyers $8k tax credit will be extended. All indicators point in the positive that they will, especially if NAR (National Association of Realtors) have their way.

Watch the outcome of the U.S, France, and Britain’s pressure on Iran this week to play havoc in the markets.

Plus, Friday’s Unemployment Report will be a definite market challenger as well. Keep in mind that when stocks do well, it usually has a reverse impact on MBS’s and vice-versa.