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RATES FALL SLIGHTLY ON FOMC ANNOUNCEMENT
December 19th, 2008 Categories: Buyer's Corner, First Time Buyers, Market Conditions, Relocating, Selling Thoughts, Trends
Mortgage interest rates fell slightly this past week as the Fed cut the discount rate by 75 basis points at the conclusion of its FOMC meeting on Tuesday. Additionally, the Federal Reserve stated that they would purchase large quantities of agency debt and mortgage backed securities to support the mortgage and housing markets. The yield on the 10 Year Treasury Note fell from 2.58% last Friday to 2.10%
currently but mortgages have not kept pace.
Economic data of note included sharp declines in November Housing Starts and Building Permits, which fell to their lowest levels on record. The November Consumer Price Index (CPI) fell 1.7%, the largest decline on record. Core CPI, excluding the food and energy components, was unchanged.
The Dow Jones Industrial Average is currently at 8,611, down slightly on the week. Crude oil futures are currently trading at $35.10 per barrel, down over $11 per barrel on the week. President Bush announced that GM and Chrysler will get $13.4 billion in government loans in exchange for restructuring their businesses.
Next week look toward Tuesdays final read on third quarter GDP, Wednesdays Durable Goods Orders and Personal Income and Outlays as potential market moving events.
Written by Brody Stinson | Discussion: No Comments »
RATES FALL AGAIN ON NEGATIVE ECONOMIC DATA
December 13th, 2008 Categories: Buyer's Corner, First Time Buyers, Market Conditions, Relocating, Selling Thoughts, Trends
Interest rates fell slightly again this week on continued negative economic data. October Wholesale Inventories and weekly jobless claims were much weaker than expected. November Retail Sales fell 1.8%. Excluding automobile sales, Retail Sales were down 1.6%. The November Producer Price Index (PPI) fell 2.2% on expectations that it would fall 1.8%.
Excluding the food and energy components, core PPI increased 0.1%. November import prices fell 1.8% and export prices fell 2.9%. China’s November Exports fell 2.2% year over year, its first year over year decline in seven years. At next weeks FOMC meeting the markets increasingly expect the Fed to cut the Fed Funds rate by 75 basis points to a rate of 0.25%.
Other news of note includes the auto bailout plan, which has stalled in the Senate. The Dow Jones Industrial Average is currently at 8,575, down about 60 points on the week. Crude oil futures are currently trading at $44.83 per barrel, up about $3 per barrel on the week. The US Dollar lost ground versus both the Euro and Yen.
Next week look toward Mondays Industrial Production, Tuesdays FOMC Announcement, Consumer Price Index (CPI), and Housing Starts as potential market moving events.
Written by Brody Stinson | Discussion: No Comments »
RATES CONTINUE TO FALL ON ECONOMIC DATA
December 5th, 2008 Categories: Buyer's Corner, First Time Buyers, Market Conditions, Relocating, Selling Thoughts, Trends
Mortgage interest rates fell slightly on the week on continued negative economic data.
This Weeks Rates
Todays November employment report showed job losses of 533,000 on expectations that 320,000 jobs would be lost. The unemployment rate was reported at 6.7% on expectations of 6.8%. The ISM Manufacturing Index and the ISM Services Sector Index were weaker than expected. October Construction Spending and Factory Orders were also weaker than expected. The Treasury is considering buying mortgages at rates as low as 4.50% but no details have been worked out. It is just a rumor at this point.
The Dow Jones Industrial Average is currently at 8,264, down almost 500 points from the Wednesday before Thanksgiving. Crude oil futures are currently trading at $41.21, down over $13 per barrel on the week. U.S. automakers continue to ask Congress for bailout loans to help them avoid bankruptcy.
Next week look toward Thursdays International Trade and weekly jobless claims and Fridays Producer Price Index (PPI) and Retail Sales as potential market moving events.
Written by Brody Stinson | Discussion: No Comments »
RATES INCREASE DESPITE FALL IN TREASURY YIELDS
November 25th, 2008 Categories: Buyer's Corner, First Time Buyers, Market Conditions, Relocating, Selling Thoughts, Trends
Mortgage interest rates increased slightly this past week despite the yield on the US Treasury 10 year note falling from 3.71% to 3.174% currently. This is the biggest weekly drop in the 10 year note since the stock market crash of 1987. Money continues to flow into safe Treasury debt with short-term yields nearing zero and out of the stock market.
The Dow Jones Industrial Average is currently at 7,528, down almost 1,000 points on the week. The market is now speculating that the Fed may cut the Fed Funds rate by 75 basis points at its December FOMC meeting.
Economic data of note included the Producer Price Index (PPI) and the Consumer Price Index (CPI). PPI fell 2.8%, its largest decline since 1947 and CPI fell 1.0%, its largest decline in 61 years. October Housing Starts and Building Permits fell substantially. Housing Starts are at their lowest level since 1959 and Building Permits are at their lowest level since 1960.
Crude Oil futures prices continued to fall, dropping over $8 per barrel to $48.59 per barrel currently. Fannie Mae and Freddie Mac announced that they will suspend foreclosures over the holidays. Citigroup announced that they will eliminate over 50,000 jobs.
Next week look toward Tuesdays second look at third quarter GDP and Wednesdays Durable Goods Orders and Personal Income and Outlays as potential market moving events.
Written by Brody Stinson | Discussion: No Comments »
RATES INCREASE SLIGHTLY ON TREASURY DEBT AUCTIONS
November 14th, 2008 Categories: Buyer's Corner, Colorado Round Up, First Time Buyers, Focus on Boulder, Market Conditions, Real Estate Tales, Relocating, Selling Thoughts, Trends
Today’s Market Commentary:
Interest rates increased slightly this past week as the US Treasury auctioned off $55 billion of debt. Economic data continued to be negative. Weekly jobless claims jumped by 32,000 claims on expectations that claims would actually fall by 2,000.
Continuing claims increased to 3.9 million from 3.84 million the previous week. October Retail Sales fell by 2.8% on expectations that sales would fall by 1.2%. Excluding auto sales, Retail Sales fell by 2.2% on expectations that sales would fall by 0.9%. Fannie Mae and Freddie Mac reported third quarter losses of $29 billion and $25.3 billion respectively. Markets increasingly expect the Fed to cut short term interest rates by 50 basis points again at their FOMC meeting December 16.
The Dow Jones Industrial Average is currently at 8,503, down about 440 points on the week. Crude oil futures are currently trading at just over $56 per barrel, down almost $5 per barrel on the week. China announced a $586 billion stimulus package to keep their economy growing.
Next week look toward Monday’s Industrial Production, Tuesday’s Producer Price Index (PPI), and Wednesday’s Consumer Price Index (CPI) and Housing Starts as potential market moving events.
Written by Brody Stinson | Discussion: No Comments »
Mortgage Market Update
November 11th, 2008 Categories: Buyer's Corner, First Time Buyers, Market Conditions, Selling Thoughts, Trends
Today’s Market Commentary:
RATES FALL
ON WEAK ECONOMIC DATA
Interest rates improved this week on generally weaker than expected economic data. Today’s employment report for October showed job losses of 240,000 on expectations of 200,000 lost jobs. The unemployment rate increased 0.4% to 6.5% on expectations that it would increase to 6.3%. The October ISM Manufacturing Index was reported at 38.9 on expectations that it would come in at 42.0. Any read under 50 indicates contraction. The September ISM Services Sector Index and September Factory Orders were also weaker than expected.
Other economic news of note included interest rate cuts by the Bank of England and the European Central Bank. The Bank of England cut their benchmark lending 
rate by 1.50% and the European Central Bank cut its rate by 0.50%.
The Dow Jones Industrial Average is currently at 8,894, down about 330 points on the week. Crude oil futures are currently trading at $60.99, down about $7 per barrel on the week. The one month Libor continues to fall and is currently at 1.622%.
Next week look toward Thursday’s International Trade and weekly jobless claims and Friday’s October Retail Sales reports as potential market moving events.
Written by Brody Stinson | Discussion: No Comments »
Weekly Mortgage Market Update
November 1st, 2008 Categories: Uncategorized
Today’s Market Commentary:
RATES INCREASE SLIGHTLY ON MIXED ECONOMIC DATA
Interest rates increased slightly on the week on a mixed bag of economic data. September New Home Sales actually increased 2.7% and inventories fell
Rates posted on October 31, 2008
to a 10.4 month supply. October Consumer Confidence fell to 38 on expectations that it would fall to 52. September Durable Goods Orders increased 0.8% on expectations that they would fall 1.0%. Third Quarter GDP fell by 0.3% on expectations that it would fall 0.5%. The economy saw its biggest decline since third quarter 2001. September Personal Income was slightly better than expectations and Personal Spending was slightly worse than expectations.
Other news of note included the Fed cutting short term interest rates by 50 basis points at the conclusion of its FOMC meeting on Wednesday. The Fed Funds rate now stands at 1.0%. The Fed stands ready to take this rate to zero if necessary to continue to help the economy.
The Dow Jones Industrial Average is currently at 9,273, up almost 900 points on the week. Crude oil futures are currently at $64.84 per barrel, more or less unchanged on the week.
Next week look toward Mondays ISM Manufacturing Index and Fridays employment report for October as potential market moving events.
Written by Brody Stinson | Discussion: No Comments »
Stay Fit in Boulder, Colorado
October 28th, 2008 Categories: Buyer's Corner, Colorado Round Up, Focus on Boulder, Relocating, Trends
Cyclists North of Boulder
Boulder, Colorado is consistently rated as one of the most physically fit cities in the United States and it’s no wonder. Boulder is a complete fitness and health mecca. No matter where you live in Boulder, there is a gym, health club, and/or recreation center within walking distance. Read the rest of this entry »
Written by Brody Stinson | Discussion: No Comments »
RATES FLAT DESPITE WEAK ECONOMIC DATA
October 20th, 2008 Categories: Buyer's Corner, First Time Buyers, Market Conditions, Relocating
Interest rates(HAVE A LOOK AT THIS WEEKS RATES) were mostly flat on the week despite economic data that was mostly negative. The New York Empire State Manufacturing Index, September Retail Sales, September Industrial Production and Capacity Utilization, the Philadelphia Fed Business Index, September Housing Starts and Building Permits, and the University of Michigan Consumer Sentiment Index were all substantially weaker than expected. Industrial Production fell by 2.8%, the largest monthly decline since December 1974. On the flip side, though, the September Producer Price Index and Consumer Price Index continued to show elevated inflation levels which should fall in coming months in light of the world economic downturn. It is increasingly likely that the Fed will cut short term interest rates at its October 29 FOMC meeting.
Other news of note included a coordinated effort by the US, France, Germany, Spain, the Netherlands, and Austria to guarantee bank debt effectively eliminating counter party risk. This has helped the overnight Libor rate fall to 1.67% today from 5.38% on October 8. Also, crude oil futures prices are currently trading at $71.47 per barrel, down about $9 per barrel on the week. The Dow Jones Industrial Average is currently at 8,940, up almost 500 points on the week.
Next week look toward Thursdays Weekly Jobless Claims and Fridays Existing Home Sales as potential market moving events.
Written by Brody Stinson | Discussion: No Comments »
Boomer’s are Buzzing About Nicaragua’s Affordable Cost of Living and Stunning Natural Beauty
October 13th, 2008 Categories: Relocating, The Senior Network, Trends
Scenic Beauty and Surfing Paradise
Many baby boomers are discovering the affordability and beauty of Nicaragua’s southern Pacific coast.
San Juan del Sur, Nicaragua- What was once a small Read the rest of this entry »
Written by Brody Stinson | Discussion: 1 Comment »
