The biggest irony of the story is that J.P. Morgan Chase is one of the companies lobbying to have a federal law loosened that bans these types of companies from making bets with their own money. Mr. Dimon, when my child used to come home later than he was supposed to, he would then argue that he needed to be allowed to come home later. However since he couldn’t follow the first rule, why in the world would I give him even more freedom? (Good luck getting the Fed’s to allow you to “lose”, I mean” bet” even more money).
Mortgage rates continue to remain at record lows and buyers seem to be responding to it. The Mortgage Bankers Association reported this week a nice increase of 3.4% in purchase activity. Refinances increased a smaller 1.3%.
Sentiment in many real estate markets around the country is that the combination of low home prices with incredibly affordable mortgage rates is making the time perfect to act on purchasing. In addition, many markets around the country are beginning to see housing inventories drop which is creating upward pressure on home prices in certain areas. Ever since the banks had to revamp their foreclosure practices, the amount of foreclosed homes coming on the market has dropped significantly which can further impact home prices: Less inventory creates more demand.
The stock market has been taking it hard this week in that many investors are becoming more concerned about more financial trouble in Europe. The stock averages have been declining throughout the week, however the losses have not been overwhelming, indicating that although there is concern, panic has not set in.
Gas prices have dropped approximately 20 cents in the last 30 days giving drivers a reprieve at the pumps. What is exceptionally gratifying is that typically gas prices will peak in late May just as the country is heading into the summer driving season.
Inflation on the wholesale level remained unchanged this past month indicating that inflation remains completely in control. The financial uncertainty in Europe combined with concerns about corporate profits here in the U.S. continue to keep many investors on the sidelines and others putting their money into government bonds which is what is keeping mortgage rates amazingly low.
This week was a quiet week for economic data. Next week we may see more volatility as we begin to receive the first of many housing reports to be released in the next week and a half. I have predicted in the past that we would see housing numbers improve; however, I am giving up my predictions for the time being. Simple reason is because my predictions have not been all that accurate, and I can find so many other ways to embarrass myself, I don’t need to do it by making bad predictions or bets. (Hmm, maybe there is a job opening at J.P. Morgan chase for me).
Reports for next week are:
- Tuesday May 15th – Consumer Price Index and Retail Sales
- Wednesday May 16th - MBA Applications, Housing Starts, Industrial Production and FOMC Minutes
- Thursday May 10th - First Time Jobless Claims
Call Me Today for More Information About:
· Purchasing w/Low Down
· FHA Loans
· VA Loans
· USDA 100% Financing
· 203k Rehabilitation Loans
· Fannie Mae Homepath
· Refinancing for: Cash Out, Debt Consolidation, Remodeling, etc.
· Reverse Mortgages for Seniors
· Home Equity Line of Credit
· Construction Loans
· Commercial Property Loan
I appreciate your business! Have a great day!!!
Sincerely,
Cindy Tomlinson
Loan Officer
USLending Company
DRE Lic # 01520422
NMLS # 214851
NMLS # 214851
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