Mortgage Weekly Update - Last Week in Review - Market improving
Foster Weeks does a weekly mortgage update.===================================
"The market has improved over the past week after the big drop from the fall out of the revised Jobs Reports, however is running into technical overhead resistance – meaning that it is more likely that rates in the short term are more likely to go up than down.
"This week is loaded with several hi impact economic reports, so stay tuned and we’ll see where this goes.
"Take 3 minutes to read the details of how this affects the Housing Market – knowledge is power!
"FOR MOST FOLKS, NO NEWS IS GOOD NEWS...BUT FOR THE MEDIA, GOOD NEWS IS NOT NEWS AT ALL. - Gloria Borger Isn't that the truth - and aside from election news, much of this week contained little to no economic news or reports for Traders to chew on. This indeed turned out to be good news for Bonds and home loan rates, which improved over the course of the week, although very slightly.
"A few interesting notes from the week on housing and home loan rates...First, the old 'Maestro' himself, former Fed Chairman Alan Greenspan was in the news, saying the current economic downturn was 'likely temporary.' Greenspan also noted the worst of the housing market slump is likely past us. During a Q&A session at the annual Charles Schwab Impact conference in Washington DC, Big Al stated 'The economy is obviously going through a significant slowing period, which as best I can tell is more than likely temporary. And while the housing market is not out of the woods yet, the current slump may not worsen.' A little cryptic in his trademark style...but if he's right, this could point to a good buying opportunity for homes right now.
"Additionally, rumors circulated about some change in direction of China's massive holdings of foreign exchange reserves - which are mainly ours, in the form of Mortgage Bonds. Remember that their huge appetite for our Bonds has helped keep Bond prices high and home loan rates low. It sounds as if China is looking to diversify the country's foreign-exchange reserves and is considering 'various options', such as trading in some of their hoard of US Dollar-based Bonds - again, such as Mortgage Bonds - in exchange for other foreign currencies and gold. If China is in the process of cashing in some of their Bond holdings, this could pressure Bond pricing lower in time, resulting in higher home loan rates... read on.
- Foster Weeks
posted by SFResidence.com @ 6:53 AM
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