This weeks Mortgages Comment has been provided by Vicci Bonner with Granite Mortgage located here in Fayetteville, NC.
Fed Testimony
The Fed Chairman delivers the Federal Reserves semiannual report on monetary policy, familiarly called the Humphrey-Hawkins report, to both the House and Senate Banking Committees in February and July. The report is one of the most important speeches given by the Fed Chairman. The remarks made to each committee tend to be identical in nature and address basic economic principles. The areas addressed tend to be the overall state of the US economy, recent developments, economic fundamentals, foreign developments, economic outlook, ranges for growth, and concluding remarks. Senator Hubert Humphrey and Representative Augustus Hawkins originally sponsored the legislation. The legislation officially expired in 2000; however, the Fed Chairman continues the practice.
There is a potential for market volatility anytime Bernanke speaks. Exactly what rates will do is unknown, even to Bernanke. Therefore a cautious approach to lock decisions is necessary.
Economic Indicator
Release Date
ConsensusEstimate
Analysis
Producer Price Index
Tuesday, July 15,
8:30 am, et
Up 1.3%,
Core up 0.3%
Important. An indication ofinflationary pressures at the producer level. Weaker figures may lead to lower rates.
Retail Sales
Tuesday, July 15,
8:30 am, et
Up 0.3%
Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates.
Fed Testimony to Congress
Tuesday, July 15,
10:00 am, et
None
Important. Bernanke will deliver his semi-annual economic and monetary policy testimony to Congress.
Consumer Price Index
Wednesday, July 16,
8:30 am, et
Up 0.7%,
Core up 0.2%
Important. A measure of inflation at the consumer level. Lower than expected increases may lead to lower rates.
Industrial Production
Wednesday, July 16,
9:15 am, et
Up 0.2%
Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.
Capacity Utilization
Wednesday, July 16,
9:15 am, et
79.4%
Important. A figure above 85% is viewed as inflationary. A decrease may lead to lower mortgage interest rates.
Fed Minutes
Wednesday, July 16,
2:00 pm, et
None
Important. Details of the last Fed meeting will be thoroughly analyzed.
Housing Starts
Thursday, July 17,
8:30 am, et
Down 0.7%
Important. A measure of housing sector strength. Larger than expected decrease may lead to lower rates.
Philadelphia Fed Survey
Thursday, July 17,
10:00 am, et
-15.2
Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.
For more market information, general questions, or to schedule a consultation contact Vicci at vbonner@granitemortgageinc.com.
July 14, 2008...2:36 pm
A Granite Mortgage Update
This weeks Mortgages Comment has been provided by Vicci Bonner with Granite Mortgage located here in Fayetteville, NC.
Fed Testimony
The Fed Chairman delivers the Federal Reserves semiannual report on monetary policy, familiarly called the Humphrey-Hawkins report, to both the House and Senate Banking Committees in February and July. The report is one of the most important speeches given by the Fed Chairman. The remarks made to each committee tend to be identical in nature and address basic economic principles. The areas addressed tend to be the overall state of the US economy, recent developments, economic fundamentals, foreign developments, economic outlook, ranges for growth, and concluding remarks. Senator Hubert Humphrey and Representative Augustus Hawkins originally sponsored the legislation. The legislation officially expired in 2000; however, the Fed Chairman continues the practice.
There is a potential for market volatility anytime Bernanke speaks. Exactly what rates will do is unknown, even to Bernanke. Therefore a cautious approach to lock decisions is necessary.
Release Date
Consensus Estimate
Analysis
Producer Price Index
Tuesday, July 15,
8:30 am, et
Up 1.3%,
Core up 0.3%
Important. An indication of inflationary pressures at the producer level. Weaker figures may lead to lower rates.
Retail Sales
Tuesday, July 15,
8:30 am, et
Up 0.3%
Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates.
Fed Testimony to Congress
Tuesday, July 15,
10:00 am, et
None
Important. Bernanke will deliver his semi-annual economic and monetary policy testimony to Congress.
Consumer Price Index
Wednesday, July 16,
8:30 am, et
Up 0.7%,
Core up 0.2%
Important. A measure of inflation at the consumer level. Lower than expected increases may lead to lower rates.
Industrial Production
Wednesday, July 16,
9:15 am, et
Up 0.2%
Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.
Capacity Utilization
Wednesday, July 16,
9:15 am, et
79.4%
Important. A figure above 85% is viewed as inflationary. A decrease may lead to lower mortgage interest rates.
Fed Minutes
Wednesday, July 16,
2:00 pm, et
None
Important. Details of the last Fed meeting will be thoroughly analyzed.
Housing Starts
Thursday, July 17,
8:30 am, et
Down 0.7%
Important. A measure of housing sector strength. Larger than expected decrease may lead to lower rates.
Philadelphia Fed Survey
Thursday, July 17,
10:00 am, et
-15.2
Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.
For more market information, general questions, or to schedule a consultation contact Vicci at vbonner@granitemortgageinc.com.
Vicci Bonner, Loan Officer
910.484.7272 Office
866.417.7272 Toll Free
910.263.1639 (mobile)
910.484.7278 (fax)
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