Your mortgage update

Straight Stats

Mortgage interest rates improved slightly on the week
with limited new economic data for markets to digest. Of note, May Existing
Home Sales and New Home Sales were down, but not as much as expected. Weekly
jobless claims increased more than expected, up 9k to 429k claims. The final
look at Q1 GDP showed annualized growth of 1.9%, slightly higher than the 1.8%
expected. May Durable Goods Orders were up 1.9% on expectations that they would
be up 1.0%. The Fed’s FOMC meeting concluded on Wednesday. As expected, the Fed
left the Fed Funds rate unchanged. Also, the Fed indicated that it will not
engage in a third round of quantitative easing. It appears that the EU and IMF
have agreed to a bail-out package for Greece. However, Greece must pass $118
billion of austerity measures through parliament.

Commentary

The world received a ton of new information this week,
most in political cloak, all difficult to interpret. Markets accordingly have
wockety-tonged all over the place, but the 10-year T-note sliding below 2.90%
says the net effect is heightened anxiety. The only straightforward stuff was
US economic data. Sales of both new and existing homes slid in May, but with no
real change in pattern. Weekly claims for unemployment insurance are trickling
upward, 11-straight weeks above 400,000 — far below the 650,000 post-Lehman, but
about the same as the worst of the two prior recessions. May orders for durable
goods improved, but did not offset April’s decline; similarly, the Chicago
Fed’s index in May was again negative, but better than April.

Provided by:

Mitch
Friedman

Branch Manager

303.650.7427 direct

303.650.2671 fax

mfriedman@pmglending.com

visit my website

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