Cari Anderson's East Bay Mortgage Update for June 25th 2010
Economic News: The Existing Home Sales numbers announced Tuesday were a bit of a disappointment and the estimated annual sales rate came in much lower than expected. The New Home Sales figures announced on Wednesday also disappointed the markets. New homes sales fell 33% in May with a forecast annual rate of 300,000 units which is the lowest reading going back to 1963. Obviously the stimulus expiration is having an impact as supply of homes also increased in both the new & existing home space. As expected the Federal Open Market Committee (FOMC) met and made no change in the current overnight rate. Yesterday brought Durable Goods Orders which were not great but within the consensus. Jobless Claims were in line with expectations as well and while not signaling a near term improvement in the employment picture there was a nice drop in continuing claims. Finally, this morning's Gross Domestic Product (GDP) report was revised downward for the first quarter of 2010 to 2.70% from the initial estimate of 3.20%.
Mortgage Markets: The yield on the 10 Year Note has fallen from 3.245% on Monday to 3.09% as of this morning. In addition, the Mortgage Backed Securities have rallied through the week but pricing looks like it may be a little worse this morning compared with yesterday's closing levels. If you are looking to close on a purchase or refinance in the next 30 days today provides a great opportunity to lock.
Next Week's Reports: Monday: Personal Income & Outlays. Tuesday: Case-Shiller Home Price Index & Consumer Confidence. Wednesday: ADP Employment Report. Thursday: Jobless Claims, ISM Manufacturing Index, Construction Spending & Pending Home Sales Index. Friday: Employment Situation.
Stay tuned for the Next East Bay Mortgage Update.
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I'm curious, Cari -- what are you seeing in the Danville area? Lots of sales activity with multiple offers? Buyers just sitting, waiting? The Peninsula seems to be a mixed bag at present.
Lottie: from what I've heard things have cooled down a little bit but if a property is priced right, they're moving well.
gezz it seems a lot of downward activity, I hope things pick up, I give you a lot of credit. This profession can be very challenging at times, but with focus and dedication I know you all can succeed :)
Howdy and afternoon there Cari
The Real Estate market has been taking a downwards turn all over the Country, from what I have been hearing from folks.
There are homes here still that have been listed on the market for the pass three years.
The really sad thing is, many of them were marked up in price by $100,000 to $500,000 when the last Tax Credit had gone into affect. And they have not been lowered as of yet, I sure feel bad for those sellers.
Most of the homes that did sale here were For Sale By Owners, the owners did not mark their homes up.
Have a good one
Dale