A new survey by Trulia.com found that 72% of all renters wish to eventually own their own home.
Of those that want to own their own home, one third are ready to buy now and two thirds say that they will wait two years or more. One-third is a very sizable number and combined with consistently low mortgage rates at or near their historic lows, the stage is set for entry-level home sales to continue to surge. As the entry-level market continues to improve, that provides demand for those that are moving up to the next price level. While renters are eager to own, they are concerned about the unemployment picture, the economy, and down payment options.
What Happened to Rates Last Week:
Mortgage backed securities (MBS) lost -19 basis points last week causing 30 year fixed rates to rise. MBS neared their best all-time pricing levels on Thursday. After we reached those great levels, we pulled back -47 basis points by Friday. The gains in mortgage backed securities (the only thing 30 year conventional mortgage rates are based on) were primarily the result of very weak Initial Jobless Claims and Philadelphia Fed Manufacturing data. We pulled back from our best pricing on Friday due mainly for profit taking as no one wanted to hold MBS at their highs.
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 |
| 24-Aug | 10:00 | Existing Home Sales | July |
| 25-Aug | 8:30 | Durable Orders | July |
| 25-Aug | 8:30 | Durable Goods -ex Transportation | July |
| 25-Aug | 10:00 | New Home Sales | July |
| 25-Aug | 10:30 | Crude Inventories | 21-Aug |
| 26-Aug | 8:30 | Initial Claims | 21-Aug |
| 26-Aug | 8:30 | Continuing Claims | 14-Aug |
| 27-Aug | 8:30 | GDP – Second Estimate | Q2 |
| 27-Aug | 8:30 | GDP Deflator – Second Estimate | Q2 |
| 27-Aug | 9:55 | U Michigan Consumer Sentiment – Final | Aug |
