Goods news for mortgages and real estate
I wanted to share a few pieces of good news with you.
The past two days have produced a few surprisingly positive pieces of news. The first came yesterday by way of the Existing Home Sales Report. Expectations were for 4.4 million and the actual data came in at 4.7 million cutting down the standing inventory number we all love so much (not J ). Much of this is likely due to the lower interest rate environment we are in right now. Speaking of low rates, the Fed is in the middle of a 2 day meeting that will determine their rate cut/hike decision and more importantly their continued policy on purchasing mortgage backed securities. Their recent purchases have influenced the secondary market and pushed mortgage rates lower. Right now, the bond market is up 44 bps which means mortgage rates are currently improving! Tomorrow’s Fed Statement will have a big impact on the market and we will be sure to let you know what they say.
Another interesting piece of news out of California today reported that foreclosure notices were down over 20% in the 4th quarter when compared to quarter 3 and were down 7% when compared to last year. We are certainly not in CA, and according to the latest poll Phoenix is atop the list of declining home prices (CA had 3 cities in top 20) but this is still a significant piece of news and something to keep an eye on.
The troubling news is that of continued layoffs around the country and that of course “as jobs go, so goes housing” so in the long run this is at the heart of all we are dealing with. Please let me know if you have any questions, or if there is anything we can help you with!
Your Trusted Advisor, Jeremy House, C.M.P.S.
