New Home Sales Surge in July:
Sales of newly constructed U.S. single family homes rose for the fourth straight month in July and set their fastest pace since September 2008. The Commerce Department said sales rose a staggering 9.6%. That was the biggest monthly percentage gain since February 2005. Additionally, inventories of unsold homes fell to their lowest level in 16 years.
This report came on the heels of last week’s existing home sales that jumped 7.2 percent. There is no question that the housing market is making a comeback. The only question is: Do you want to throw in your hat and purchase now while prices are still attractive, or later after they have already gone up?
What happened to rates last week:
We had a fairly stable week for mortgage backed securities as we closed +3 basis points better than at the beginning of the week. We have been trading in a fairly narrow range. This week’s economic news could finally break us out of our current trading channel. I will be watching this for you.
What to watch for this week
The following are the major economic reports that will hit the market this week. They each have the ability to affect mortgage rates. I will watch these reports closely for you and let you know if there are any big surprises.
I know you are busy and it is virtually impossible for you to keep track of what is going on in the economy. I monitor the trading of Mortgage Backed Securities; the only thing conventional mortgage rates are based upon. So I know if there is going to be a trend reversal in mortgage rates.
Call on me anytime for an industry update.
Respectfully,
Dave Campagna
Plaza Loans
(408) 754-3846
