Weekly Market Update from Curt and Shannon




August 12, 2013

Hello Brad,

As the end of summer approaches, homeowners should be reminded of the importance of conducting seasonal home maintenance tasks that help to prevent major breakdowns and expenses. The Internet is a great source for checklists – ranging from beginner's guides to professional standards.

If you or your clients need additional homeownership tips, it would be a pleasure to help. You can count on me to be of assistance.


The Dalpiaz Team

Curt and Shannon

141 S. McCormick Street Suite #107

Prescott, AZ 86303




LO License-#0912851 LO NMLS-#151454

NMLS #243638

Consistent Fed Message

Average 30-year fixed rate

Week of 08/09: -0.02%

Week of 08/02: +0.03%


Stocks (Weekly)

Dow: 15,425 -150

NASDAQ: 3,650 -25


The Trade Deficit Declined to the Lowest Level Since October 2009.

ISM Services Rose to the Highest Level Since February.

Job Openings in June Reached the Highest Level in Five Years.

Auction Demand for 10-yr and 30-yr Treasuries was Below Average.


Following the roller coaster ride two weeks ago, last week was one of the quietest weeks for mortgage rates in a very long time.  While the week of July 28th contained a Fed meeting, Employment report, and GDP data, there was very little significant economic news last week, and mortgage rates barely changed.  

In addition to a lack of major economic data, another reason for the limited volatility last week was that the message conveyed from the Fed was very consistent. The largest influence on mortgage rates in recent months has been shifting expectations for future Fed policy. According to the Fed officials that spoke this week, the Fed expects to begin to taper its bond buying program later this year. The exact timing will depend on future economic data. Investors currently expect that the tapering will begin in September or October. This means that the reaction to major economic data likely will continue to be exaggerated, as we saw on several occasions previously. 

President Obama laid out his plan for restructuring Fannie Mae and Freddie Mac last week. It is very similar to what is being proposed in the Senate, so there were no big surprises. The primary component of the plan is to shift credit risk on mortgages from the government to the private sector. There was no timetable provided, but any changes are expected to take years. The announcement created a lot of headlines, but did not have an immediate impact on mortgage rates and is not likely to affect rates anytime soon. 


The most significant economic data this week will be the Retail Sales data and the monthly inflation reports. Retail Sales account for about 70% of economic activity and will be released on Tuesday. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Wednesday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Thursday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, Industrial Production will come out on Thursday, and Housing Starts will be released on Friday. Empire State, Philly Fed, Consumer Sentiment, Productivity and Import Prices will round out the schedule.

MON 8/12

TUE 08/13

WED 08/14

THURS 08/15

FRI 08/16


Retail Sales



Housing Starts




Industrial Production














The market commentary material provided is from a third party vendor, MBSQuoteline, and is not necessarily the opinions of the sender or the organization they represent. This information is intended for educational purposes only and should not be construed as investment and/or mortgage advice. Additionally, the material is deemed to be accurate and reliable, but there is no guarantee it is without error.

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Academy Mortgage Corporation
1220 East 7800 South
Sandy, UT 84094
p. 801-233-3700

Equal Housing Lender

State Lic #LO-0912852 Corp Lic #BK-0904081 Corp NMLS #3113