Did you hear the news?
Last week was like a buffet of good news for the housing market…New Home Sales reportedly rose 17.5% in December – for the record, this came in better than expectations. I must say it again…NEW HOME SALES INCREASED 17.5%! That was not all that I learned from the report – the report demonstrated that housing continues to recover! Looks like more sold signs in Raleigh!
Now last week everyone was wondering what the Fed’s policy statement was going to be…folks, no big surprises there…the Fed made no changes and it was like a copy from all the other reports. That being said the markets were fired up last up last week about the Fed release…for what reason do you ask?
So here is the Kevin Martini 411 on why: You see the Fed has to be VERY careful with how optimistic their economic comments are because they do not want to see long term rates move higher. So the Fed’s comments were certainly not bullish.
As you all know, I am a mortgage nerd…mortgage interest rates come from the bond market – hence I spend a ton of time watching the bond market to properly help guide my Clients on when to lock or when to float…what was interesting about last week is that Bonds initially improve nicely on the Fed policy & then crumble later in the day. It left me guessing for a moment & then I realized why this was going on. You see – not everyone in the trading pits is buying what the Fed is saying. Many people believe the Fed is talking down the true underlying strength of the economy.
At the end of day, the news last week demonstrated that economic conditions are improving! As a result, the market remains volatile, As Bonds and home loan rates move up and down depending on technical’s or what reports or speeches hits CNBC or CNN. The good news is that despite the volatility, Raleigh home loan rates & Cary Home Loan Rates remain extremely low for NOW. This present a tremendous opportunity for buyers who lock in at the opportune moment – remember it is always better to be locked and wish you were floating than floating & wishing you were locked.
To learn more about the volatility and how you or someone you know can benefit from a knowledgeable advisor like myself, please call or email today. I’ll be happy to discuss the current economic climate and what it means to your unique situation.
And now a new week is here & this week the markets will follow the unrest in Egypt very closely. In addition, there is quite a few of “high-impact” reports that will hit the wire next week with a crescendo on Friday! Folks we start off on Monday with all things personal…personal spending, personal income & my favorite personal consumption expenditures (PCE). Then we will hear from those purchasing managers in Chicago & then” the king of all manufacturing” – the ISM Index. Finally it will be Friday & that is when the all-important Jobs report is released. Friday hit You know this will be jobs Friday! Needless to say, this report can be a big market mover for home loan rates in Raleigh, NC.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
Folks be sure to check on the online workshops this week @ the Home Buyer University (www.MartiniFactor.com)…for your quick reference, below is a snap shot of this weeks classes…great information is eschanged with these workshops & remember you can register for one or for all -
