Weekly News Letter

[Nathaniel O LeSpade]

	Mortgage Time Mortgage Market News for the week ending September 13, 2013
Compliments of Nathaniel LeSpade Evolve Bank & Trust Mortgage Banker PHONE: [phone] FAX: [phone] www.getevolved.com [e-mail] 5990 Greenwood Plaza Blvd Suite 270 Greenwood Village, CO 80111 NMLS #603406 Events This Week: Retail Sales Rose Sentiment Fell Import Prices Flat Manufacturing Mixed Events Next Week: Mon 9/16 Ind. Production Tues 9/17 CPI Wed 9/18 Fed Meeting Housing Starts Thur 9/19 Existing Sales Philly Fed		Waiting for the Fed Ahead of next week's highly important Fed meeting, there was little significant news this week. The US plans for Syria will take some time to decide, so it had little influence on mortgage rates. The majority of the economic data released this week fell short of expectations, which helped mortgage rates end the week a little lower. The last major economic growth data before Wednesday's Fed meeting, the Retail Sales report, showed a modest pace of growth. As was the case with last week's Employment data, it is fortunate to have steady growth, but expectations were for greater strength. Consumer Sentiment, which measures consumer expectations for future economic growth, dropped from recent multi-year highs. Investors have been closely watching the Jobless Claims reports in recent weeks for hints about the performance of the labor market, but this week's data was rendered inaccurate by a very unusual issue. Labor Department officials announced that two states were upgrading their computer systems and were unable to collect all the claims during the week. The Retail Sales report was essentially the last data which could significantly influence the Fed's decision next week. Investors have now set their expectations. Despite the modest pace of economic growth, investors anticipate that the Fed will begin to taper its bond purchases, but now by a relatively small amount. The consensus is that the Fed will scale back from its current pace of $85 billion per month of combined Treasury and mortgage-backed securities (MBS) purchases to $70 or $75 billion per month. Some investors expect the Fed to reduce only Treasury purchases, while others think it will be split. Investors also will be interested in hearing how the Fed will determine future changes in the bond purchase program.       Also Notable: Core PPI inflation was just 1.2% higher than one year ago Demand was very strong for this week's Treasury auctions Gold prices declined sharply this week Japan's second quarter GDP exceeded expectations       Average 30 yr fixed rate: Last week: +0.10% This week: -0.05% Stocks (weekly): Dow: 15,350 +400 NASDAQ: 3,700 +50     Week Ahead The long awaited, highly anticipated Fed statement will come out on Wednesday around 2:00 et. A press conference with Fed Chief Bernanke will follow at 2:30 et. There almost certainly will be a large reaction in the mortgage market to the statement. The other economic events next week will struggle to compete for attention. Industrial Production will be released on Monday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Tuesday. CPI looks at the price change for those finished goods which are sold to consumers. Housing Starts will be released on Wednesday, and the Existing Home Sales report is scheduled for Thursday. Philly Fed and Empire State will round out the Economic Calendar.   To learn more about news impacting interest rates and mortgage markets, and to  learn more about the newsletter, please call 303-800-9144 All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.
	This email was sent from Nathaniel LeSpade at Evolve Bank & Trust. To unsubscribe, email [e-mail].