Mortgage and Market Update...Spring Has Sprung!!!
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 just missing expectations, were positive. The supply of homes for sale jumped 9.6% nationwide and the months of available homes increased to 4.7 from 4.3. If we could only find more inventory in the Bay Area! Lastly, the announcement from the Federal Open Market Committee left current monetary policy unchanged. The FED noted continued economic improvement but is still focused on the unemployment picture which remains stubbornly high.
Mortgage Markets...Mortgage rates remained steady this week but again Europe could bring us some volatility depending on what happens with the situation in Cyprus. The 10 Year Note is currently trading at 1.931% versus last week’s closing level of 2.002%.
Next Week’s Market Moving Reports...Tuesday: Durable Goods Orders, Case-Shiller Home Price Index, New Home Sales, Consumer Confidence Wednesday: Pending Home Sales Thursday: Jobless Claims, Gross Domestic Product 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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