Good afternoon...
I hope you all had a great holiday. Today feels like a
holiday too but since I'm so reliable, I didn't want you
to actually miss a Wrap Up report!
- Turmoil continues with the news out of Europe no better than it
has been recently. The stock market has taken some hits, with
the Dow down considerably over the last couple days. But the
European drama is actually helping the US bond markets. If the
debt issues in Europe start effecting the larger countries there,
such as France and Germany, the credit markets here could
freeze. I believe lower levels of trading volume are a result of
this uncertainty. On Wednesday, the debt issuance of German
government bonds failed, and this definitely heightened fears
that the crisis is spreading. Things are going to come to a head
shortly...tick-tock....
- The FDIC announced that the inventory of foreclosures held by
private banks dropped for the fourth straight quarter (ending in
September). It's a drop of 5% from last year too. Delinquency
rates, according to the Mortgage Bankers Association, are also
down almost 8% from this time last year. Slow economic growth
and high levels of uncertainty are still restraining lending and
impacting underwriting standards, but these numbers indicate
that perhaps the tide is beginning to turn somewhat. Home price
stimulation and continued low rates could kick start the housing
industry in 2012.
- Interest rates remain steady. 30 year at about 4% for purchases.
The Jumbo fixed is in the mid-4% range. ARM's tilted downward
slightly, and are now in the 2.75%-3.75% range, for both types of
loans.
Thanks for reading and enjoy the weekend.
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