Euro summit boosts U.S. markets
Posted June 29, 2012
The last two days have seen back and forth movements for the markets, but we ended up the week on a higher note as it relates to Europe and their pending debt crisis. European leaders finished their banking summit Friday, announcing a possible unified banking solution, and giving support to U.S. markets which had one of their best days in recent times. The good news helped drive Treasury prices down, yields up and caused a slight uptick in mortgage prices on Friday.
The perceived strength out of Europe also drove the Dow to significant gains Friday. It closed up 277 points. However, the economic news here at home was not quite as positive.
The University of Michigan’s Consumer Sentiment report fell for June to a reading of 73.2. That number is down sharply from May’s reading of 79.3, fueling further discussion that the U.S. consumer is still highly concerned about the jobs market and overall economic conditions at home.
Mortgage applications decreased 7.1 percent for the week ending June 22 as demand dropped in both purchase and refinance categories.
Triangle housing is trending better however with the announcement of the Pending Home Sales Index, which climbed to a two-year high in May. Pending home sales are contracts signed, which indicate future improvements in housing, and when coupled with anecdotal success stories from Triangle realtors and builders, I believe the stage is set for continued housing growth here in the Triangle.
Even with the market volatility over the past couple of days, mortgage rates continue their low rate trend, helping to support a high level of affordability for potential housing homeowners.
Stay cool and have a wonderful weekend.