Monday Market Commentary

by Alex Stenback on August 8, 2005

Mortgage_rate_080405gifhmedium_1
                                                      Graphic Courtesy of MSNBC
Last Week
Friday’s employment report showed the economy created 207,000 new jobs, which bested analysts estimates by about 27,000, give or take.  This news, though good for the economy, has pushed mortgage rates upward still. As you can see from the chart above, we are below the highs for the year – small consolation we know.
This Week
The Fed meets Tuesday, and they will raise short trerm rates yet again – last week’s employment report gives them ample ammunition to continue on the rate-hike path through the end of the year. Treasury auctions Tuesday through Thursday, 2nd Quarter Productivity, and July retail sales are all worth watching as the markets continue to digest last weeks news.  All of this may make it tough for rates to make a move lower any time in the near future.
· This Week’s Ecomomic Calendar [briefing.com]
·Latest Twin Cities Real Estate Market Report [pdf via MAAR]

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