Good Monday Morning!
This could be an interesting week for the mortgage bond market, we are going to receive a lot of economic data and many Wall Street traders will be out of the office early in the week ahead of the long weekend. We could see more volatility than we have in several weeks. The ADP report on Wednesday and the Bureau of Labor Statistics’ report on Friday will tell us a lot about how the third quarter is progressing as we recover from the economic shutdown earlier this year. Last week, we saw 2 positive reports on the American consumer. First, the Consumer Consumption report showed an increase of 1.9% which beat expectations and was higher than pre-pandemic levels. Second, the Consumer Sentiment Survey, which measures consumer’s attitudes towards their own financial situation and their opinion of their economic future, beat expectations and showed improvement over July’s survey. Those are both positive reports since consumer spending drives 70% of our economy. Enjoy the week!
Good Monday Morning!
The stock markets are starting the week out in positive territory primarily due to news that Pfizer and BioNTech have each announced they will conclude their third round of clinical trials and submit vaccines for formal approval as early as October. The Nasdaq, which has a lot of tech stocks, is trading at its all-time high. There are two reports coming out tomorrow that will be significant as indicators of the health of our economic recovery. First, the Consumer Confidence index is expected to be reported at 93, a slight increase from July’s reading of 92.6. Any reading over 50 indicates improving consumer confidence. Since consumer spending makes up 70% of our economy, the Consumer Confidence index is an important indicator of future consumer spending. Second, July New Home Sales are projected at 785,000 units, an increase over June’s 776,000 units. Housing is an important driver of our economy and viewed as an important catalyst for our economic recovery.
Interest rates are holding steady and helping to keep housing affordable even as prices continue to rise.
Enjoy the week!
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Home Mortgage Consultant
Military Lending Specialist
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Wells Fargo Home Mortgage | 2215 N. 30th St., Suite 100 | Tacoma, WA 98403
Tel 253-274-4910 | Cell 253-961-5138
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