Rounding Out The Year…

  • December 30, 2013

roundingtoonRates and pricing improved slightly this morning leading into a Pending Home Sales report that came in a little weaker than expected along with a Dallas Fed report that showed that manufacturing is not expanding as much as expectation. Outside of the couple of data points, it has been extremely quiet around here. Trade desks are likely trying to get to the New Year, so we are unlikely to see any big movements between now and January 2nd. Couple of bullets from today:

  • Pending Home Sales increased .2% month over month which was less than the 1% prediction from economists.
  • The Dallas Manufacturing Index of 3.1 (positive number indicates expansion, a negative number would indicate contraction) was a little short of the 4 prediction, however up from the 1.9 reading in November.
  • With both of the above reports not matching expectation/speculation, this is good for the bond market. Why? Well, Bernanke and Yellen both indicated that their determination of how much to cut bond purchases and when was data dependent. Weaker numbers mean the Federal Reserve may stick around longer with their current purchasing habits, increasing overall demand for bonds, and in turn leading to better mortgage pricing for the consumer.

By Jeremy VanBuskirk, Quicken Loans Capital Markets Analyst

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