Wednesday, September 1, 2010

Daily Mortgage Market Information

The Institute of Supply Management's Manufacturing Index showed surprising strength last month.  This measure of activity at the nation's factories rose from a reading of 55.5 in July to 56.3 for August.  The modest gain bucked investors' expectations for a gain in the very low 50's.  The data suggests conditions in the manufacturing sector held up much better than anticipated last month.  The manufacturing sector has now expanded for 13 straight months -- though the pace of growth has slowed noticeably during the last quarter.  The ISM August data is at odds with recent regional reports from the Federal Reserve showing a far more notable slowdown in the manufacturing sector.   It appears investors decided the mixed message with respect to activity levels at the nation's factories warrants the use of a "better-safe-than-sorry" pipeline risk management strategy this morning - an event that has created the move to lower rate sheet prices in today's early going. 
 The survey for the week showed all mortgage applications edged 2.7% higher on a week-over-week basis.  The refinance index climbed 2.8% while the purchase index showed a gain of a more modest 1.8% for the week.  Refinance applications accounted for about 83% of all applications and more than 80% of the prospective loan volume.  

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