In the upcoming week a lot of data is coming out that could affect the housing market and the mortgage industry. Later today, information about new home sales is set to be released. It will be interesting to see how the expiration of the first-time homebuyer tax credit affected new home sales in June.
On Tuesday, the S&P Case-Shiller Home Price Index is going to be released. This is probably the most important indicator of home prices nationwide. Later on in the day, data on consumer confidence will be released. Both the Home Price Index and information on consumer confidence could play a big role in the direction mortgage rates move.
The Mortgage Application Index is set to be released on Wednesday. Last week application volume increased, mainly sparked by an increase in the amount of applications for refinancing. This could have a large impact on current mortgage rates. Also on Wednesday data on Durable Goods will be released, as well as the Federal Reserve’s Beige Book. These two reports will have less of an effect on the mortgage industry than the mortgage application index will.
Thursday data on Initial Jobless Claims will be released. This index has been slightly skewed recently because of seasonal adjustment problems, specifically at automobile manufacturers such as GM.
On Friday the report on the Gross Domestic Product, GDP, is going to be released. This is a very important indicator of what is going on in the nation’s economy. It is expected that this will show that recovery slowed down in the second quarter. Later on the report on Consumer Sentiment will be released. This will affect the financial market, stocks and bonds, more than it will necessarily impact the mortgage business.
Do you think these reports will have a large impact on the mortgage industry? Let us know in the comments section below.
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Mr. Grammar
July 27, 2010 @ 5:56 am
An informative article. Thanks!
One nit-pick: “These two reports will have less of an affect on the mortgage industry than the mortgage application index will.”
The word you want is “effect”. “Affect” is the verb.
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Staff Reply:
July 27th, 2010 at 9:25 am
Mr. Grammar, thank you very much for your helpful tip.
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