Mortgage rates hit the lowest levels of a lifetime 

 

The most aggressive loan pricing was seen on June 23rd, 2010, following a string of weaker than expected housing data. While mortgage rates did rise a few basis points on June 24th, consumer borrowing costs generally recovered on June 25th. After lenders repriced for the better, mortgage rates closed the week near the best levels witnessed on Wednesday. 

 

Here is a recap:

Just like the previous week, the economic calendar in late June is not jammed packed but it does contain a couple of influential data points. The most important release comes from the Official Employment Situation Report.

 

Things got started slow with only one economic release today: Personal Income and Outlays.   This monthly report provides market watchers with a view into the strength of consumers by tracking what Americans earn and what they spend.  A stronger consumer benefits the stock market while a weaker consumer helps keep mortgage rates low.

 

The following data (provided by the Bureau of Economic Analysis) contains three separate reads on the health of consumers.  

Personal Income: the monthly change in income that households receive from all sources (before taxes).

Personal Outlays (consumer spending): the monthly change in the amount of money consumers are spending on durable and non-durable goods and services.   

Personal Savings Rate: the monthly change in the amount of money consumers are saving instead of spending.

 

Personal Income: increased $53.7 billion, or 0.4 percent, in May. Private wage and salary disbursements increased $22.8 billion compared with an increase of $28.5 billion in April. Census decennial temporary and intermittent workers boosted government wages and salaries by $5.7 billion. Year over year, personal income is up 1.6%, this is lower than the 2.6% year over year gain reported in April. 

 

Personal Outlays: increased $21.8 billion in May, in contrast to a decrease of $1.2 billion in April. Year over year, consumer spending is up 4.6%.

 

Personal Savings: increased $27.1 billion to $454.3 billion in May, compared with $427.2 billion in April. Personal saving as a percentage of disposable personal income was 4.0 percent in May, compared with 3.8 percent in April.