TGIF! And it's the last day to get $8000 for some folks - I have not heard of any extension to the tax credit - but be advised that it is extended for some military folks. Below are some commentaries as to what the rates are doing and information on yet another hard working non profit agency here in the Portland area. Have a great weekend; feel free to contact me for assistance.
From Freddie Mac
Long-term mortgage rates are holding steady, with a 30-year fix little changed from last week, according to Freddie Mac's weekly rate report.
The average rate on a 30-year fixed rate mortgage was 5.07 percent in the week ending April 29, down from 5.07 percent last week. A year ago, a 40-year mortgage was averaging 4.8 percent.
One-year adjustable-rate mortgages averaged 4.25 percent, up from 4.22 percent.
"Mortgage rates on 30-year fixed-loans have averaged about 5 percent over the first four months of this year, staying within a band of roughly a quarter percentage point and virtually matching 2009's annual average," said Freddie Mac (NYSE: FRE) chief economist Frank Nothaft. "These low rates have been helping to moderate house price declines over the course of the year."
The most-recent Standard & Poor's/Case Shiller home price report said prices in February were up an average of 0.7 percent from a year earlier, the first annual increase since December 2006.
Washington was one of nine large cities to see positive growth, with prices up 5 percent from a year earlier.
From Dick Lepre, San Francisco:
Friday April 30, 2010
1stQ2010 GDP (preliminary) was +3.2% which was below consensus of 3.3%. More importantly, Consumer Spending was +3.7%. Employment Cost Index was +0.6%.
Thursday April 29, 2010
Initial Jobless Claims: 448,000, consensus 445,000, previous 459,000, 4-week moving average was 462,500. One thing I find interesting about the Greek debt thing is that the difficult part is selling some sort of "austerity" program to the Greek people. Eventually the U.S. will have to come to some sort of fiscal responsibility modus and that is going to be a similarly tough sell to the public.
Treasury yields were up yesterday having become technically overbought and correcting.
|
From Think Big Work Small
Treasuries and mortgage markets opened flat this morning and continued to flat line at 9:00 after 8:30 data. Q1 advance GDP at 8:30 was in line with estimates at +3.2%; personal consumption (spending) increased 3.6% double the gain in Q4 2009. The price index fell to +1.5% frm +2.5% in Q4 with the core increase just 0.6% after increasing +1.8% in Q4. The report didn't generate any movement in the rate markets. Also at 8:30 Q1 employment cost index increased 0.6%, slightly higher than 0.5% expected; Q4 employment costs were +0.4%.
At 9:45 the April Chicago purchasing mgrs index, expected at 59.8, jumped to 63.8 the highest index reading since Apr 2005; the new orders component increased to 65.2 frm 61.8 in March and employment jumped to 57.2 frm 53.1. A very good repot for mid-west manufacturing. The reaction was not what we would have expected however, the DJIA actually retreated to unchanged from +13, the 10 yr note didn't move at all and mortgage prices, somewhat volatile today fell back to +2/32 (.06 bp) frm +4/32 (.12 bp) at 9:30.
At 9:55 the final data point this week, the U. of Michigan consumer sentiment index was forecast to be 71.5 frm 69.5 two weeks ago and 73.6 at the end of March, hit better at 72.2. The current conditions index at 81.0 frm 82.4 a month ago; the expectations index at 66.5 frm 67.9 and the 12 month out index at 80 frm 78 a month ago. The data moved the 10 yr note price up slightly and initially pushed the DJIA to -7 on the day, mortgage prices moved back to the levels at 9:30. The two data points at 9:45 and 9:55 have had very little impact on the markets.
Greece debt problems continue to brew, overnight however there apparently was some progress with EU and IMF officials saying they may have a plan put together by tomorrow. In the meantime Greek Prime Minister George Papandreou said the nation's survival was at stake while asking the EU for 159B euros to bail out the country. Signs of the accord that may require 24 billion euros ($32 billion) in austerity measures ended a bond market selloff across Europe this week. The Greek deficit was 13.6% of GDP in 2009. The yield on Greek 10-year government bonds, which surged to 11.406% on Wednesday, was at 9.07% this morning. What appears to be a momentary relief of debt default is lessening the safe haven trade that is one force that rallied US bond markets over the past two weeks. The euro advanced for a third day against the dollar and yen on signs Greece may reach an agreement on budget cuts needed to win a potential $159 billion in financial assistance.
More on G/S; Federal prosecutors are now investigating the firm for possible criminal actions in mis-leading investors in the sub prime mortgage collapse. Likely there will be nothing come of it, in cases involving civil suits of this magnitude it is normal for prosecutors to take a look. Even the SEC will find it difficult to succeed in its civil suit against Goldman Sachs that doesn't require the depth of proof a criminal complaint has to prove.
Nothing left for markets to look at today, all the scheduled data is out and the Greek debt problems won't have any definitive announcements now until at least tomorrow. Trade through the day in the bond and mortgage markets will be directed by how the equity markets trade; strong rally in stocks will act as a drag on the bond market. |
HACIENDA
These folks work so hard on so many levels - from helping locate down payment assistance funds to getting involved with teaching first time buyers and helping folks with strategies on keeping their home. Following is more information on this very dedicated non profit housing agency:
Our Mission
Hacienda CDC develops affordable housing and builds thriving communities in support of working Latino families and others in Oregon by promoting healthy living and economic advancement.
Nuestra Misión
Hacienda CDC trabaja para mejorar las condiciones de vida de las familias trabajadoras latinas y otras en Oregon a través del desarrollo de vivienda social con programas de buena salud, educación y avance económico.
Our Resident Community
Hacienda has a community of approximately 2,000 residents. Roughly 60% are Latino; 20% Somali/African American; and 20% other. Residents typically earn between 30 to 60 percent of Area Median Income: $21,000 to $42,000 for a family of four in 2009. More than half of our residents are children.
Affordable Rental Housing
The first step in Hacienda's community development work is to build dignified affordable housing for Oregon's working Latino families and other recent immigrants. Hacienda buildings are more than just housing, they are places where families can live and thrive in safe, supportive, community-centered environments.
Community Economic Development
Microenterprise: Residents have the opportunity to participate in Hacienda's Micro Mercantes program, a micro-enterprise development initiative providing entrepreneurial training and assistance to female residents -- often teams of mothers and daughters -- to start their own businesses.
Adult Education: Hacienda CDC partners with Mexico's National Institute for Adult Education (INEA) to provide an adult education curriculum for Mexican and Latino youth and adults. At these Plazas Comunitarias, students gain Spanish literacy skills, complete their primary and secondary education certificates, learn English, prepare for GED, and improve computer literacy skills.
Homeownership: Hacienda's homeownership program is designed to help both first-time home buyers and homeowners. We offer home buyer education classes, financial literacy classes, and bilingual housing counseling.
Community Building
Hacienda's programs promote healthy and vibrant parent-child relationships, helping children reach their full potential and giving parents the tools to support their child's educational and emotional development.
Early Childhood Education: Portland Niños provides early childhood education to parents and developmental activities for children from birth to age five, monitoring their progress and promoting kindergarten readiness.
Afterschool programs: A program for grades one through 8 that is designed to increase family participation, school attendance, reports of a positive experience in school, and high school graduation. In addition, the program focuses on reducing youth risk factors such as gang involvement, dropping out of school, and drug and alcohol abuse.
SSSES: Social & Support Services for Education Success (SSSES) is an off-site academic support program for at-risk youth providing case managers for over 50 low-income Hispanic middle-schoolers and their families throughout North and Northeast Portland.
Community Gardening: Residents at two housing sites in Portland and Molalla participate in community gardening at on-site garden plots. The community gardens exist for the physical and social benefit of the residents and are made possible through collaborative support from other organizations.
Hacienda CDC
5136 NE 42nd Ave.
Portland, OR 97218
Phone: (503) 595-2111
Fax: (503) 595-2116
Comments(0)