Foreclosure Rates Fall To Lowest Level Since 2007:
Its yet another sign that the Spring market will be a strong one as we will not face a wave of foreclosure inventory hitting the market and suppressing home prices.
The U.S. housing market is back on its feet, aided by rising home prices, steady job growth and fewer troubled loans.
More U.S. homeowners are also keeping up with their mortgage payments. March was the 42nd straight month where U.S. foreclosure activity dropped from year-ago levels.
The number of U.S. home foreclosure filings slid 23 percent in March from a year ago, helping bring first-quarter foreclosure activity to its lowest level since the second quarter of 2007, a report from RealtyTrac showed.
What Happened to Rates Last Week:
Mortgage backed securities (MBS) gained +47 basis points (BPS) from last Friday’s close which caused 30 year fixed mortgage rates to move slightly lower from the prior week. The market saw the lowest rates on Thursday and the highest rates on Wednesday.
For the third straight week, we had domestic economic data that under normal circumstances would have caused MBS pricing to deteriorate. Consumer Sentiment was stronger than expected (82.6 vs 81.0), Initial Jobless Claims were lower than expected (300K vs 320K), the Producer Price Index was higher than expected (0.5 vs 0.1) and Import Prices were higher than expected (0.6 vs est of 0.2).
But once again, the growth in the U.S. was overshadowed by concern over China (this time over their weaker than expected export data) and Ukraine/Russia as tensions still mount. This caused more flight to safety by international traders which propped up demand for our bonds and completely countered our economic growth. As a result, your interest rates improved.
Date Time (ET) Economic Release Actual Market Expects Prior 14-Apr 8:30 AM Retail Sales – 1.00% 0.30% 14-Apr 8:30 AM Retail Sales ex-auto – 0.50% 0.30% 14-Apr 10:00 AM Business Inventories – 0.60% 0.40% 15-Apr 8:30 AM CPI – 0.10% 0.10% 15-Apr 8:30 AM Core CPI – 0.10% 0.10% 15-Apr 8:30 AM Empire Manufacturing – 7.5 5.6 15-Apr 9:00 AM Net Long-Term TIC Flows – NA $7.3B 15-Apr 10:00 AM NAHB Housing Market Index – 50 47 16-Apr 7:00 AM MBA Mortgage Index – NA -1.60% 16-Apr 8:30 AM Housing Starts – 955K 907K 16-Apr 8:30 AM Building Permits – 1003K 1018K 16-Apr 9:15 AM Industrial Production – 0.50% 0.60% 16-Apr 9:15 AM Capacity Utilization – 78.80% 78.40% 16-Apr 10:30 AM Crude Inventories – NA 4.030M 16-Apr 2:00 PM Fed’s Beige Book – NA NA 17-Apr 8:30 AM Initial Claims – 312K 300K 17-Apr 8:30 AM Continuing Claims – 2800K 2776K 17-Apr 10:00 AM Philadelphia Fed – 8.6 9 17-Apr 10:30 AM Natural Gas Inventories – NA 4 bcf
I will be watching these reports closely for you and let you know if there are any big surprises:
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.