First Team’s Weekly Mortgage Watch (February 9th, 2014) this week highlights the following updates:

• Last week started with some disappointing news for manufacturing. The ISM Manufacturing Index was expected to drop slightly, but dropped more than expected.  This seemed to help fan concerns regarding growth, both here and abroad, and mortgage rates moved downward.
• The ISM Services Index did manage to increase slightly more than expected, but was unable to shift rates back upward. The unemployment rate dropped slightly, but only 113,000 new jobs were added last month.
• Data for the last month seems to be revealing some of the same story for the economy.  We experienced a reasonable burst of activity, followed by a slower growth period.  The overall trend continues to show a growing economy, but it can’t seem to build and maintain a strong growth rate.
• If we get more disappointing economic news this week, especially in Retail Sales or Industrial Production, we could see rates slowly drifting downward.  New Fed Chair Janet Yellen also has two public appearances this week.  Her statements could also drive rates and stock markets either way.
• According the National Association of Home Builders/First American Title Insurance Leading Markets Index, 58 out of 350 metro areas have returned to their pre-recession levels.  The Index tracks employment, home prices, and permits for home construction.  The highest scoring large metro in the index was Baton Rouge, LA.