Mortgage rates continue to remain under pressure last week falling the lowest levels of 2011. Fantastic timing for the Spring Real Estate Market. The overall market was down about .5% and some choppy trading and this week looks to bring some increased volatility to trading. We have had such a big run up in the market over the last 2 years that it seems we are finally running out of steam or at least slowing down in the face of some strong head winds.
Looking at the economic calendar for the week, there is a big chunk of housing related data on tap.
Tuesday 830AM- Housing starts- A housing start is registered at the start of construction of a new building intended primarily as a residential building. The start of construction is defined as the beginning of excavation of the foundation for the building. We had a nice bounce in March after some dismal February numbers. It will be interesting to see if we can hold that momentum.
Wed. 2pm- FOMC Minutes- These are the minutes from the last Fed meeting and will give us some insight as to the tone of the meeting and if everyone is on board with current policy.
Thursday 10am- Existing Home Sales -Existing home sales tally the number of previously constructed homes, condominium and co-ops in which a sale closed during the month. Existing homes account for a larger share of the market than new homes and indicate housing market trends. Let's hope for a strong number and continued movement of inventory off the market.
My Opinion:
I think this is going to be a down week for the stock market and a stable to lower interest rate environment. We got through last week's inflation numbers without too much movement to the upside. There are pressures in Europe. There is flooding in the Midwest and Southeast and the disruption that may cause. And we have our own debt ceiling issues in the news.
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