Economic News...The minutes of the Federal Open Market Committee did not reveal any substantial change in thought about current monetary policy. A nice tidbit was that the view of the economic results and reports since the last meeting “was somewhat more positive than expected”. Weekly Jobless Claims, while disappointing last week, made a dramatic about-face this week coming in at 346K versus the expected 365K. The two major reports for today have contributed to improvement in the bond markets and mortgage rates. Retail Sales figures were tepid and are definitely worth watching in the near-term as … (3 comments)
bay area jumbo mortgage: Bay Area Mortgage & Market Update for April 5th
- 04/05/13 09:34 AM
Economic News...was a little weaker than expected. The ISM Manufacturing Index and Factory Orders results were mixed. While the headline figures were tepid there was some positive data hidden in the underlying numbers. Employment stats for the week were the real market driver. On Wednesday, the ADP Employment Report results predicted a weaker Employment Situation in Friday’s release. This came true with today’s announcement of 88,000 jobs created versus the 193,000 expected. The unemployment rate trended lower to 7.6% but the labor force participation rate dropped from 63.5% to 63.3% which is a level not seen since 1979. Is the … (2 comments)
bay area jumbo mortgage: Bay Area Mortgage & Market Update for March 29th
- 03/29/13 03:43 AM
Economic News...We had a fair amount of housing data for the week. The Case-Shiller Home Price Index continued to move sharply higher. New Home Sales for February, while slightly less than expected, followed a very strong January. Pending Homes Sales were mostly flat as increasing portions of the country are experiencing inventory issues. This is good news for housing overall as more regions come to the party California started over a year ago. Interesting news on the consumer front: Consumer Confidence tumbled which was mostly attributed to increased payroll taxes and higher fuel prices while Consumer Sentiment increased to one … (4 comments)
Economic News...There was a lot of housing news released this week. The Housing Market Index (gauge of new home sales) declined for the second month in a row but when you look at the forward data things are pretty good. In addition, the Western Region leads the way by a wide margin. Housing Starts numbers looked just OK but permits made excellent headway in January. This report can be all over the map from month to month due to weather conditions and as well as the volatile multi-family sector. Existing Home Sales, while … (4 comments)
Economic News...Can wait ‘til next week since there is not much going on.....
Random St. Patrick’s Day Facts....
March 17th is the feast of St. Patrick, the patron saint of Ireland who is believed to have died on that date in the year 461AD. According to the last US Census, 34 million Americans have Irish ancestry. That's nearly nine times the entire population of Ireland! Every year the Chicago River is dyed green in honor of the holiday. The dye only lasts a few hours. It is estimated that there about 10,000 ordinary 3 leaf … (2 comments)
bay area jumbo mortgage: Bay Area Mortgage & Market Update for March 8th
- 03/08/13 05:03 AM
Economic News...The stock market continues to roll on with the Dow Jones making new highs (four in a row this week). While the growth of equities is good news for the consumer and market in general, it traditionally comes at a cost to the debt markets. This morning’s Employment Situation report was “icing on the cake” for traders and has sent mortgage rates higher. Weekly Jobless Claims also continued to move lower and once again beat estimates. There was an interesting article in last week’s New York Times which highlights the value of excellent communication and customer service. “About a third … (3 comments)
Economic News...This was a great week for housing news. While this may not come as a surprise for those of us on the front lines of real estate in the Bay Area the increasingly positive vibe of housing markets around the nation is certainly welcome. The S&P Case-Shiller Home Price Index continues to climb. The 20 city index climbed .9% for the month while prices out west are experiencing 1-2 percent monthly gains. New Home Sales numbers blew away estimates with the 381K anticipated eclipsed by the 437K actual annualized number. Pending Homes Sales also sailed by … (2 comments)
Economic News...for the week was fairly light and mostly benign. Factory Orders, while not meeting expectations, still showed some strong points in the underlying data. The ISM Non-Manufacturing Index results were inline with expectations, indicating continued economic growth. Weekly Jobless Claims remain range bound and the four week moving average continues moving lower. Things are changing with FHA loans as the Mortgage Insurance Premiums are set to increase and most buyers will be required to pay this over the life of the loan versus the old 78% loan-to-value threshold. Next week remains fairly quiet for economic reporting … (5 comments)
Economic News...The year 2007 has popped up a lot this morning. The Dow Jones Industrial Average topped 14,000 for the first time since then and California posted the highest number of home sales over 1MM dollars as well. Last year was also a record for luxury home sales in the Golden State (697 sold for over 5MM dollars). Market reports were a mixed bag. The manufacturing sector showed strength but fourth quarter Gross Domestic Product slipped into the negative. Pending Home Sales were down 4.3% as inventory of homes for sale dwindles nationwide while there was a … (2 comments)
Economic News...Existing Home Sales were reported lower than anticipated. While typically this could be seen as a negative a closer look reveals that the lack of inventory of homes for sale is to blame. So, on the positive side is a simple story of supply and demand where lack of supply (coupled with greater demand) will drive prices higher. This was also evident in the New Home Sales numbers. Weekly Jobless Claims were much better than expected for the second week in a row. Keep an eye out on jobless number revisions as three states, including California, … (3 comments)
Economic News...was heavy this week and, despite a few bumps, was strong enough for the equity markets to continue their winning ways. News on the inflation front was tame as both the Producer Price Index and Consumer Price Index pulled back. Retail Sales for December rebounded from weaker November levels and were up .50% versus the expected .20%. Industrial Production came in above estimates and provided a positive view on the manufacturing sector which had been a concern recently. Housing Starts for December grew sharply with the Multi-Family group leading the way. Single Family Home Starts were … (3 comments)
Economic News...There was hardly any data released this week. Jobless Claims moved up slightly to 371,000. The biggest news was the release by the Consumer Financial Protection Bureau of the rules regarding “Ability to Repay & Qualified Mortgage Standards Under the Truth in Lending Act”. If you think the title is long the actual document is over 800 pages. Thus far there does not seem to be too much consternation from the industry and the rules do not go into full effect until January 10th 2014. Mortgage Markets...The debt markets have settled down a bit after losing … (2 comments)
Economic News...As we rang in the New Year all eyes were on the Congress & President to avert the so called “Fiscal Cliff”. A deal was struck but look out for more volatility as the United States has reached the debt ceiling and what looks to be a contentious battle lies ahead in the next few months. Good news for those who are having to go the short sale route. Mortgage Debt Tax Relief was extended for another year. California’s Homeowner Bill of Rights, which was signed last year by Governor Jerry Brown, has taken effect. One … (3 comments)
bay area jumbo mortgage: Bay Area Mortgage & Market Update for December 28th
- 12/28/12 04:35 AM
Mortgage and Market Update Economic News...for the week trended to the positive. Continued good news in the housing sector dominated the reports. In 2012 we were able to see mortgage rates remain low as well as experience a rebound in our local housing markets. Low inventory, multiple offers and increasing prices were certainly welcome indicators to a sector continuing its recovery. HAVE A SAFE & HAPPY LAST FEW DAYS OF 2012 AND BEST OF LUCK IN 2013!!!...
Mortgage Markets...Were pretty quiet in this holiday shortened week but with the fiscal cliff talks set to heat up there may be … (6 comments)
bay area jumbo mortgage: Bay Area Mortgage & Market Update for December 21st
- 12/21/12 02:36 AM
Mortgage and Market Update Economic News: 2012 is rolling to an end and the news for this week was not “Naughty” but “Nice”. The Housing Market Index reported its 8th straight monthly gain and builders reported the best conditions in five years. Housing Starts were revised lower for the previous two months but that news certainly seems to be offset by the sentiment of home builders. Existing Home Sales were up 5.9% with supply dwindling again. Third Quarter Gross Domestic Product was revised upward to an annualized rate of 3.1% from the expected 2.7%. Keep an eye on Consumer Sentiment as … (2 comments)
bay area jumbo mortgage: Bay Area Mortgage & Market Update for December 15th
- 12/14/12 06:01 AM
Mortgage and Market Update Economic News: The major news of the week was the forward guidance issued by the FED regarding interest rates. The “exceptionally low” interest rate philosophy seemed to change from a specific timeframe to one that is tied to the employment picture. A target of 6.5% unemployment or below would be the benchmark. Operation Twist is also coming to an end but will be replaced by a similar program. Loan demand for home purchases reached a 2012 high for the third week in a row. Who says the purchase market cools off in the Winter months??? Now for … (3 comments)
bay area jumbo mortgage: Bay Area Mortgage & Market Update for December 8th
- 12/08/12 02:42 AM
Mortgage and Market Update Economic News: Another week of mixed data that trended more toward the positive than negative. The ISM Manufacturing Index was a little disappointing as it fell to 49.5. A reading greater than 50 marks expansion. Construction Spending results offset the weaker manufacturing numbers by continuing to rise and is up 9.6% versus this time last year. October Factory Orders handily beat estimates by rising .8%. On the employment front we saw Weekly Jobless Claims decline and the unemployment rate decrease to 7.7%. There was some concern with the decreased rate being tied to a shrinking labor participation … (2 comments)
bay area jumbo mortgage: Bay Area Mortgage & Market Update for November 16th
- 11/16/12 08:06 AM
Bay Area Mortgage and Market Update Economic News: Inflation fears were muted by the results reported in both the Consumer & Producer Price Indicies. Hurricane Sandy is still causing havoc, this time in economic reports. Retail Sales were down. Weekly Jobless Claims were way up and Industrial Production fell. While not all can be blamed on Sandy she did affect the numbers to a degree. Now it’s time to think about what we are thankful for and get ready to enjoy a short work week and time off with family and friends.Mortgage Markets: Despite volatility in the Mortgage Backed Securities market … (4 comments)
bay area jumbo mortgage: Bay Area Mortgage & Market Update for November 9th
- 11/09/12 06:28 AM
Mortgage and Market Update Economic News: It was certainly an up and down week for the equity and debt markets. After starting the week off strong the stock market took a nosedive on Wednesday due to a combination of the election results (uncertainty regarding the ability of Congress and the President to come together on a deal concerning the “fiscal cliff” that begins in 2013) and the persistent troubles within the European Union. This weakness in the equity markets benefited the bond market and interest rates. The economic reports for the week continued the trend of good news. The ISM Non-Manufacturing … (2 comments)
bay area jumbo mortgage: Bay Area Mortgage & Market Update for November 2nd
- 11/02/12 06:17 AM
Mortgage and Market Update Economic News: The big news for the markets this week was the closure of the exchanges for two days in the aftermath of Sandy. The economic reports for the week were not nearly as tumultuous or destructive. The Case-Shiller Home Price Index notched a 2% YOY gain in the 20 markets tracked. Consumer Confidence continued to improve and both personal spending and incomes were up. Unfortunately, higher energy prices did eat into those gains. Manufacturing and Factory Orders were positive as well. On the jobs front the ADP & Employment Situation reports came in more bullish than … (2 comments)
Mortgage and Market Update
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