Weekly Market Update from Curt and Shannon



August 26, 2013

Hello Brad,

'If all the cars in the United States were placed end to end, it would probably be Labor Day Weekend.' Hope you enjoy this quote – and your Labor Day adventures.

Safe travels.


The Dalpiaz Team

Curt and Shannon

141 S. McCormick Street Suite #107

Prescott, AZ 86303




LO License-#0912851 LO NMLS-#151454

NMLS #243638

Taper Timing

Average 30-year fixed rate

Week of 08/23: 0.00%

Week of 08/16: +0.20%


Stocks (Weekly)

Dow: 15,025 -150

NASDAQ: 3,635 +25


Existing Home Sales Rose to the Highest Level Since Nov. 2009.

Jobless Claims Remained Close to 5-Year Lows.

The Treasury Will Auction $98 Billion in Securities Next Week.

Euro Zone Growth Dta Was Stronger Than Expected.


It was a volatile week for mortgage rates. The FOMC Minutes suggested that the Fed will begin to taper its bond purchases in the near future as expected, but a surprising decline in the New Home Sales data made that outcome less certain. After the offsetting influences, mortgage rates ended the week with little change.

The FOMC Minutes from the July 31 Fed meeting were released on Wednesday, but they did little to remove the uncertainty about when the Fed will begin to scale back its bond purchase program. The main takeaway from the Minutes is that Fed officials were split at the meeting about the timing for the taper to begin. Fed officials agree that the decision should be based on the performance of the economy, but they diverge on what constitutes sufficient strength. Bottom line, though, is that there was nothing in the Minutes to contradict investor expectations that the Fed will begin to taper in September or October, and mortgage rates rose after the release of the Minutes.

Friday's New Home Sales report caught investors by surprise. Data released earlier in the week showed that July Existing Home Sales increased 7% from June and were 17% higher than one year. This lead investors to believe that the solid improvement seen in the housing sector this year would continue. However, July New Home Sales showed a decline of 13% from June. Existing Home Sales, which cover roughly 90% of home sales, are based on closings, while New Home Sales measure signed contracts. As such, New Home Sales reflect more current economic conditions than Existing Home Sales. Several Fed officials have expressed concerns that rising rates would slow the pace of economic growth. The decline in New Home Sales provides clear support that these concerns are justified. The question is whether the data will be enough to cause the Fed to hold off longer before tapering its bond purchases. The reaction from investors reflected the belief that tapering may be farther away, as mortgage rates improved after the release of the report.


Durable Orders will be released today. Pending Home Sales will come out on Wednesday. Revisions to second quarter GDP will be released on Thursday. Friday will be the big day with Core PCE inflation, Personal Income, and Chicago PMI. Consumer Confidence and Consumer Sentiment will round out the schedule. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday.

MON 8/19

TUE 08/20

WED 08/21

THURS 08/22

FRI 08/23

Durable Orders


Pending Sales


Core PCE





Chicago PMI













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.

All products are subject to credit and property approval. Program terms and conditions subject to change without notice. Not all products are available in all states or amounts. Other restrictions and limitations apply.

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