April 26th, 2010

April 26, 2010
The Housing Market Update
Waterstone Mortgage
Brought to you by:

Barb Perry
Branch Manager
Office: 208-472-8877
Cell: 208-859-9696
bperry@waterstonemortgage.com

5583 Glenwood
Boise, ID 83714
www.themortgageplace.us


Home Sales Surge:
Two new reports were released that showed a strong surge in home sales. Existing Home Sales rose more than expected in March, reversing three months of declines. Kicking off what is expected to be a strong Spring selling session.

The National Association of Realtors reported that sales of previously occupied homes rose 6.8 percent to a seasonally adjusted annual rate of 5.35 million units. This is the highest level since December. The nationwide median home price was slightly higher than a year earlier at $170,700.

In a separate report, the Commerce Department said new home sales surged higher by 27%. They reported that new home sales rose in March to an annualized rate of 411,000 units. It was the strongest month since last July and the biggest monthly increase in 47 years.

More Economic Growth:
Initial Jobless Claims fell for the first time in three weeks as new filings for state unemployment benefits dropped 24,000. Many market analysts expect that we will continue to see improvement in the labor market over the coming weeks.

Durable Goods Orders (long-lasting U.S. manufactured goods - for example: an oven) moved upward sharply. Orders for items (excluding transportation and defense) jumped 2.8% last month. This is the largest rise since December 2007. This coincides with the very strong manufacturing data that we have been seeing. This shows that personal and business consumption is on the rise and is very good news for the economy.

What Happened to Rates Last Week:


Mortgage backed securities (MBS) lost -40 basis points last week which caused 30 year fixed rates to increase for both government and conventional loans to their highest levels in two weeks. MBS pricing decreased (which causes mortgage rates to rise) due to strong economic data such as Initial Jobless Claims, very strong housing data, and Durable Goods Orders. Positive economic news is great for consumers but long term bonds such as mortgage backed securities react negatively due to the increased potential of inflation.

What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises:
Date ET Release For
27-Apr 9:00 Case-Shiller 20-city Index (y/y) Feb
27-Apr 10:00 Consumer Confidence Apr
28-Apr 10:30 Crude Inventories 24-Apr
28-Apr 14:15 FOMC Rate Decision 28-Apr
29-Apr 8:30 Continuing Claims 17-Apr
29-Apr 8:30 Initial Claims 24-Apr
30-Apr 8:30 GDP-Adv. Q1
30-Apr 8:30 Chain Deflator-Adv. Q1
30-Apr 8:30 Employment Cost Index Q1
30-Apr 9:45 Chicago PMI Apr
30-Apr 9:55 Mich Sentiment Apr

I know you are busy and it is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.





Waterstone Mortgage
5583 Glenwood, Boise ID, 83714
Phone: 208-472-8877
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