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 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 »
Freddie and Fannie who? What the crisis means for you !
September 8th, 2008 Categories: Buyer's Corner, Market Conditions, Trends
Can you tell it’s an election year? Gas prices are coming down finally and the credit crisis is being shaken up big time! My mom always said, “sometimes it takes a crisis to solve a crisis”, and that most people need to be hit in the head with a 2 x 4 to get their attention first!. Yes indeed! Can you imagine the headache Fannie Mae and Freddie Mac have right now? Read the rest of this entry »
Written by Karen Cifala | Discussion: No Comments »
10 Good Reasons to Buy Real Estate in Colorado Now!
July 16th, 2008 Categories: Colorado Round Up, Market Conditions, Trends
Home ownership is how 
many people usually begin to accumulate wealth, so why are some people holding off on buying a home in today’s market? We all know that housing is a key driver of the economy and continues to be a strong long-term investment for most people. I guess some are hoping that interest rates will fall further and I’m sure that some people are hoping that home prices will continue to come down. Right now there are several key reasons that make it a good time to buy a home or an investment property and also some things to think about should you decide to wait. Read the rest of this entry »
Written by Karen Cifala | Discussion: No Comments »
