Beginning of the Week Update
Economic News: The Personal Income & Outlay figures were reported this morning. Nothing really dramatic to report as personal income came in at the lower end of the expected range and spending softened with a decline in auto sales. At the end of last week Governor Schwarzenegger signed Assembly Bill 183 into law. The bill made provisions for $200 million in homebuyer tax credits. $100 million will be allocated to qualified first time home buyers of existing homes and $100 million for buyers of new or previously unoccupied homes. The eligible taxpayer who purchases a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before Dec. 31, 2010, will be able to take the allowed tax credit. The credit is equal to the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years. Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).
Mortgage Markets: After the turbulence of last week things in the mortgage markets are fairly quiet this morning. The 10 Year Note is yielding 3.87 and the Mortgage Backed Securities market is stable.
Upcoming This Week: Tuesday: Case-Shiller Home Price Index & Consumer Confidence. Wednesday: ADP Employment Report. Thursday: Jobless Claims & ISM Manufacturing Index. Friday: Employment Situation.
Stay tuned for the East Bay Mortgage Update on Wednesday...Have a Great Start to the Week!
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