Mortgage Market Update Week Ending August 8, 2014

Please enjoy this quick update on what’s happening this week in the housing and financial markets. The U.S. services sector reached its highest level in 8+ years, and factory orders surged in June. Economic growth could lead to increased rates. The economic growth could speed up Fed policy changes. However, growth is balanced with other factors including inflation, which is holding steady. European economic woes and geopolitical events are contributing to downward movement in stocks. Rates are stable near their recent lows. CoreLogic reports home prices up in June for the 28th consecutive month, though rising at a slower pace. Nationally, prices are still 9% below the peak. NAHB found a $1000 increase in national median new home prices will take more than 200,000 potential homebuyers out of the market. Much has been said about student loan debt's negative affect on first time buyers. Remember, it's not the balance that matters; it's the payment amount. Mary decided to trim her household budget wherever possible. Instead of having her dress dry-cleaned, she washed it by hand. Proud of her savings, she boasted to her husband, "Just think, Tom, we are five dollars richer because I washed this dress by hand." "Good," Tom said. "Quick, wash it again!" Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.