Last week there was not a ton of reports however the reports that came out were impactful & there was a ton of news … the news played a role withRaleigh Mortgage Rates.
First on a local front we saw local data on January 2012. Folks, the market got off to a “RED HOT” start in January. When looking at the Triangle Multiple Listings (a.k.a. TMLS)…in Wake, Durham, Orange & Johnston Counties — Pending sales were up 30% & closed sales were up 7…and there is more…yes more! Overall (i.e. new home inventory & re-sale inventory) DECREASED 23%!
Fed Chairman Ben Bernanke was back on Capitol Hill last week, re-affirming his stance on keeping interest rates low through 2014. Mr. Bernanke said that high unemployment continues to weigh on the housing markets, due to the high number of people who remain out of the labor force or are under-employed. With last week’s Initial Jobless Claims coming in at 358,000, lower than the 370,000 expected, there is some good news when it comes to the labor market: It is improving, but very slowly.
Then in the news was the an agreement had been finalized with five large banks to settle alleged foreclosure abuses, including the infamous “robo signing.” The $25 Billion deal is the largest government vs. business settlement since the tobacco lawsuits back in 1998. The deal is expected to include $1.5 Billion in cash payments to borrowers who were foreclosed upon between September 2008 and December 2011, but the larger part of the settlement amount is being directed to potentially help thousands of homeowners who are presently current on their loans but owe more than their homes are worth.
Folks, it will take some time for the details to be written and released…I and the entire Kevin Martini Group here at SunTrust Mortgage will be watching this story closely & as more details are forthcoming we will let you know in future edition of The Weekly Martini.
Also in the news last week was the Europe…now this uncertainty in Europe has led to continued safe haven trading in our Bond Markets, Bonds andRaleigh Mortgage Rates worsened last week as Stocks are off to their best start to the year since 1987. The Dow Jones Industrial Average is at its highest level since May of 2008. Now with the Fed continuing to underwrite the economic recovery, it is my opinion, we should expect higher Stock prices still – and this could continue to weigh on Bonds and Raleigh Home Loan Rates over time.
The bottom line is that Raleigh Mortgage Rates remain near historic lows & now is a great time to purchase or refinance. Let me know if I can answer any questions at all for you.
Now…THIS WEEK has week several releases scheduled.
• Tuesday brings a look at the Retail Sales Report for January.
• We’ll get a double dose of manufacturing news with the Empire State Index on Wednesday, followed by the Philadelphia Fed Index on Thursday.
• Also on Wednesday, the FOMC Minutes from the Fed’s January meeting will be released.
• We’ll also get a double dose of inflation news with the wholesale measuring Producer Price Index on Thursday, followed by the Consumer Price Index on Friday.
• Also on Thursday, another Weekly Initial Jobless Claims Report will be released, plus will get a read on the housing market with Housing Starts and Building Permits.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and Raleigh Home Loan Ratesimprove, while strong economic news normally has the opposite result.
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