Mortgage Market Update – November 29, 2007
New orders for the long-lasting U.S. made manufactured goods dropped for a third straight month in October. Orders fell 0.4% last month after declining by 1.4% in September and 5.3% in August. Non-defense capital goods, long considered a proxy for business investment, weakened by 2.3% in October the biggest monthly decline in this index since February of last year.
Stock jocks viewed the data has an indication that the trend in manufacturing weakness may be in the early bottoming stage while bond daddies looked at the same data and see it indicating that the Fed will undoubtedly have to sharpen up their short-term rate cutting scissors. It is highly unlikely both camps will be right on their market call – so the overall picture remains muddled.
In other news of the day, the National Association of Realtors reported that October existing home sales fell 1.2%. The decline in the headline number was sharper than most economists anticipated but after a moment of indecision, most traders shrugged the number off when a closer examination of the report detail showed big drops in multi-family and condo sales while single-family unit sales remained flat.
The Mortgage Bankers of America released their weekly report on mortgage applications this morning. The report showed that mortgage applications declined 4.3% in the week ended November 23rd. Seasonal factors likely played a large part in the decline since 30-year note rates slipped 9 basis points lower to a national average of 6.09% last week. Jumbo and adjustable note rates both moved fractionally higher during the period.
If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.
John R. Thomas – NMLS 38783
Certified Mortgage Planner – Primary Residential Mortgage, Inc.
302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office
248 E Chestnut Hill Rd, Newark, DE 19713
