Mortgage Blog

The passage of the $700 Billion rescue plan has stalled today and everyone will be watching this weekend to see what the initial vote is from Congress to pass the proposed bill. We will know more on Sunday night and Monday morning what will happen, but my guess is that if they do pass something, we should see additional confidence put back in our financials, and mortgage will rally.

Neither of today's economic releases are considered to be of high importance, but both gave us results that were favorable to bonds. The first was the final revision to the 2nd Quarter Gross Domestic Product (GDP) that showed a revised rate of growth of 2.8%. This was a sizable downward revision to the previous estimate of a 3.3% annual rate and lower than analysts had expected for this revision. This means that the economy grew at a slower rate than many had thought during the 2nd quarter of the year.

The second report of the day and the final report of the week was the revised reading of the University of Michigan's Index of Consumer Sentiment. The preliminary reading that was released earlier this month revealed a 73.1 reading, but today's update showed a 70.3 reading. This was also lower than forecasts and hints that consumers are less optimistic about their own financial situations than thought, which usually means they are less likely to make large purchases in the near future.

Next week is packed with economic news for the markets to digest. There is relevant data scheduled for release every day of the week, beginning with August's Personal Income and Spending data Monday morning. Look for details on next week's events in Sunday's weekly preview.

If I were considering financing/refinancing a home, I would.... Float to see what happens on Capital Hill. This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Randy Reed

303.524.9191