The Market Update

 

While there was a full slate of economic data and Treasury auctions this week, investors were focused on a speech by Fed Chief Bernanke on Friday. The resulting increase in expectations for future Fed action was positive for mortgage rates, which ended the week a little lower.

Bernanke did not commit to implementing any additional easing measures in his highly anticipated speech from Jackson Hole, but his comments caused investors to raise their expectations for a third round of Fed asset purchases (called quantitative easing or QE3). Bernanke emphasized that a high jobless rate imposes large costs on the economy and left the door open for further easing. QE3 would likely involve Fed purchases of mortgage-backed securities (MBS), so mortgage rates improved after his speech. The possibility of additional monetary stimulus also caused stocks to rally on Friday.

The housing sector data released this week continued to show improvement. July Pending Home Sales increased 2% from June to the highest level since April 2010, which was shortly before the deadline for the homebuyer tax credit. Pending Home Sales are a leading indicator of future housing market activity. The June S&P/ Case-Shiller 20-city home price index increased 2.3% from May.

The biggest economic event next week may be the European Central Bank (ECB) meeting on Thursday. Investors will be watching whether there will be an announcement of additional aid measures for European countries with debt troubles. The biggest US economic report next week will be the important Employment data on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month, particularly this month coming out a little before the next Fed meeting on September 12. Before the employment data, ISM Manufacturing and Construction Spending will be released on Tuesday. Productivity is scheduled for Wednesday. ISM Services will come out on Thursday. Mortgage markets will be closed on Monday in observance of Labor Day.

Market Update :: More Stimulus Soon?

The Fed Minutes were the big story this week, raising expectations that the Fed will provide additional monetary stimulus soon. Mixed US economic data and minor news out of Europe had little impact. As a result, mortgage rates ended the week lower.

Released on Wednesday, the detailed Minutes from the August 1 Fed meeting stated that "many" members judged that further monetary easing would be called for in the near future unless economic growth shows a "substantial and sustainable" increase. In short, the Fed wants to see quicker improvement in the labor market and is prepared to act to help achieve this. Following the news, investors raised their expectations that the Fed will announce a third round of quantitative easing (QE3) soon, which would likely involve Fed purchases of mortgage-backed securities (MBS). As a result, demand for MBS increased, causing mortgage rates to improve.

One relatively bright spot for the economy this year has been improving housing market data, which was encouraging again this week. July Existing Home Sales rose 2% from June, while July New Home Sales increased 4% from June. Both measures were significantly higher than one year ago. With mortgage rates still at very low levels and home affordability very high, any pickup in the labor market could lead to increased activity in the housing market.

Next week will be packed with economic news. Revisions to second quarter GDP, Pending Home Sales, and the Fed's Beige Book will come out on Wednesday. Core PCE inflation and Personal Income will be released on Thursday. Chicago PMI Manufacturing and Factory Orders will come out on Friday. In addition, Fed Chief Bernanke will be speaking from Jackson Hole on Friday, and it's possible that he will announce new Fed actions. EU officials will be meeting with Greek leaders to discuss the terms of the bailout package. There will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Monday Market Update

Central Bank the Monday Market Update

While last week was packed with highly anticipated central bank announcements and significant economic data, there was no major economic news this week. As a result, both mortgage rates and the stock market ended the week with little change.

The pace of global economic growth is one primary influence for mortgage rates right now. Slower growth in the US, Europe, China, and most other regions has reduced inflationary pressures and supported low mortgage rates. Last week's stronger than expected Employment report and improving housing sector data, however, has raised hopes that the US will lead the rest of the world back to at least average levels of economic growth. A full slate of economic reports next week will help investors determine if the trend will continue.

While there were few notable headlines this week, news in Europe will continue to impact US mortgage rates in coming months. Weaker European countries are seeking quick relief for their debt troubles, which are close to unsustainable levels. The stronger countries such as Germany, though, are reluctant to pay the price for aid without guarantees about longer term reforms and greater central authority. It's still not certain that the European Union (EU) will remain intact. Both scheduled events and unexpected news almost certainly will have a significant effect on US financial markets for quite a while.

The most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Tuesday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Wednesday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, Retail Sales will be released on Tuesday. Retail Sales account for about 70% of economic activity. Industrial Production will come out on Wednesday. Housing Starts will be released on Thursday. Consumer Sentiment, Leading Indicators, Philly Fed, and Empire State will round out a busy schedule.

Stay tuned for more Market News and for Housing Stats released on Thursday.

Visis our websit at www.TorresRealtyGroup.com to request specific data on patricular areas that may be of interest to you.

Copyright @ 2012 MBSQuoteline

26215 Lookout Fls :: Lookout Canyon Masterpiece!

Please take a look at my new My Listing Video for property at 26215 Lookout Fls 
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Home Prices Rise in Half of U.S. Cities as Markets Stabilize

Prices for single-family homes climbed in half of U.S. cities in the first quarter as real estate markets stabilized.

The median sales price increased from a year earlier in 74 of 146 metropolitan areas measured, the National Association of Realtors said in a report today. In the fourth quarter, only 29 areas had gains.

A development in Oswego, Illinois.

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May 7 (Bloomberg) -- Michelle Meyer, a senior economist at Bank of America Merrill Lynch, talks about the U.S. economy and real estate market. She speaks with Tom Keene on Bloomberg Television's "Surveillance Midday." (Source: Bloomberg)

The U.S. housing market is showing signs of bottoming as improving employment and record-low mortgage rates boost demand while inventories of available properties tighten. At the end of March, 2.37 million previously owned homes were available for sale, 22 percent fewer than a year earlier, the Realtors said.
“The housing market is still depressed but it had a good quarter,” Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts, said in a telephone interview today. “We’re on the mend but it’s still something that will take two or three years before we’re back to normal.”
The national median existing single-family home price was $158,100 in the first quarter, down 0.4 percent from the first three months of 2011, according to the Realtors group.
The best-performing metro area was Cape Coral, Florida, where prices increased 28.1 percent from a year earlier. Prices rose 19 percent in Grand Rapids, Michigan; 16.9 percent in Palm Bay, Florida; and 16.6 percent in Erie, Pennsylvania.

Biggest Declines

Kingston, New York, had the biggest decline, with the median selling price tumbling 22 percent in the quarter. It was followed by Stamford, Connecticut, with an 18 percent decline; Mobile, Alabama, at 14.7 percent; and Atlanta at 12 percent.
The median selling price is influenced by the mix of homes on the market and probably was boosted by a smaller share of transactions involving distressed properties. Those homes, which sell at discounts, accounted for 32 percent of first-quarter sales, down from 38 percent a year earlier.
Prices are more volatile than normal because they are affected by the prevalence of distressed sales and “sudden upswings” in buyer interest in some areas, said Lawrence Yun, the group’s chief economist.

‘Broad Shortages’

“We have broad shortages of lower-priced homes in much of the country, with very tight supply in Western states for homes through the middle price ranges,” Yun said in the report.“This is good news for many sellers who wish to list now, or for those waiting for prices to improve.”
Sales of previously owned homes rose 5.3 percent in the first quarter from a year earlier, according to the report. Purchases climbed 11.7 percent in the Midwest, 6.6 percent in the Northeast, 4.1 percent in the South, and 1.4 percent in the West.
Fannie Mae, the nation’s biggest mortgage-finance company, today reported a $2.7 billion first-quarter profit after a $6.5 billion loss a year earlier, citing smaller declines in home prices as one of the reasons for improvement. The Washington-based company said that it won’t need Treasury Department aid to balance its books for the first time since it was seized by federal regulators in 2008.

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Eight Tips for Moving into a New Home

We understand that moving to a new home is exciting and it can also be an extremely
rewarding experience with careful planning. Whether you want to be closer to work or
play or you’re simply ready for a superior new home in the perfect San Antonio location,
TRG offers you the assistance to find the perfect retreat you’ve been looking for.  
We have the experts to help you create your dream home and the tips you need to prepare
for moving into it. We’ve shared our top eight to help make your next move as seamless
as possible.

Eight Tips for Moving into a New Home

1 Create a moving check list – Moving into a new home takes a lot of preparation. Ensure a smooth transition by developing a check list of what you need to accomplish at least two months prior to your move in date. Your list should include important steps like deciding on a moving company, selecting new furniture, contacting utility companies, banks, and schools and when to start packing. 2 Make a plan and map it out - Your new home will likely have a different layout as you’ve made the choice to build a new home in the style you want. Whether you’re buying new furniture or moving furniture from your current home, create a map of each room in your new home to make optimal use of furniture, decorations, window treatments and open spaces. 3 Create openness – when arranging your furniture in each room, make sure you do not block doors or walkways, or cover windows with elaborate window treatments. The more you can see through and around a room the bigger it will feel. 4 Go green – A new home offers the perfect opportunity to add energy efficient appliances to create a stylish and environmentally friendly living space. Plus, with the range of appliance available in different sizes and finishes, you can make green fit your lifestyle. 5 Keep it simple – Clear away the clutter before you move into your new home. This is your dream home and it’s your palette to create the living space you’ve always wanted. Make your new home as inviting as possible by using smart space design. 6 Make it bright – A well lit room with either natural or full spectrum bulbs coupled with soft wall colors creates a more spacious and open living space. Work with your new home designer to create a warm and inviting environment that you and your family will love. 7 Get the latest technology – New homes offer the opportunity to incorporate the latest technology, including home automation for everything from setting the alarm on the security system to turning on the AC. Plus, with a new home it’s easy to go wireless throughout the home for your computer(s), phone (s), music and more. 8 Landscape for your growing zone – Your outdoor living space and yard are an important part of why you chose your new home. Work with a professional landscaper or research your growing zone and decide on the type of plants and level of maintenance you want to undertake as part of your move in plan. Contact us TODAY to help you start your NEW HOME SEARCH!!