Market News Update - Mixed Response from Market After Budget Deal

On Thursday the Republican controlled House of Representatives approved the proposed budget plan placed for a vote.  This budget actually appears to have the support of the majority of Republicans and just enough Democrats for it to be passed.  Next week the Democrat controlled Senate will vote on the bill, which is expected to pass by a narrow margin.

The response from the markets has been mixed.  The stock market has been dropping with the belief that the latest batch of positive economic data, combined with the government appearing to pass a budget, and a seemingly slowly improving job market, will likely move the Fed closer to tapering the stimulus program.  Bond yields have been rising on this news as well, moving interest rates higher over the last couple of days.

Last week mortgage rates declined slightly bringing some home buyers and refinance borrowers to take action.  Purchase applications increased 1.0% while refinances inched up 2.0% from the prior week.  With the latest jump in interest rates this week in response to the budget deal, it is likely that the MBA mortgage applications report will show declines next week.

Adding to the hopes that the economy might continue to recover is the latest report on retail sales.  Overall retail sales jumped 0.7% in November following a rise of 0.6 % in September.

At long last the foreclosure crisis is showing signs that it’s finally fading away.  The number of foreclosure filings dropped 15% down to 113,454 in November, which is the largest decline since November 2010.  In addition, the total number of filings is the lowest since December 2006.  The number of filings is down 37% from the same time last year. 

Some real estate agents have even said that they are noticing much faster responses from many banks when it comes to approving short sales.

 

I appreciate your business and look forward to talking to you soon! Have a great day!!!
 

Sincerely,

Cindy Tomlinson
Loan Officer

USLending Company

BRE Lic # 01520422
NMLS # 214851   

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