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 a look at how the California Housing Market did over the past year. Per DataQuick...Home sales were up 14.7%, the median price paid rose 19.3% and foreclosure sales in October were down 32.9%. Pretty good news for the real estate picture in California I’d say...
Mortgage Markets: Nothing much to say about Mortgage Backed Securities and the 10 Year Note this week. Things were pretty quiet and mortgage rates are virtually unchanged from last week.
Next Week’s Reports: Tuesday: Housing Market Index Wednesday: Housing Starts Thursday: Jobless Claims, GDP, Existing Home Sales, Philadelphia FED Survey Friday: Personal Income & Outlays, Consumer Sentiment
While I do not originate loans I make it a habit to keep abreast of mortgage & market conditions. If you are thinking of purchasing a home the first step is to meet with a mortgage professional. I will gladly provide several top-notch Bay Area advisers for your review if you are in need of a referral.
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