Last week saw more mixed news on both the housing market and economy in general. Existing home sales were up 7%, which was the largest increase in two years. Since existing sales make up a majority of all sales, this was very well received. Jobless claims however, were a disappointment as both initial and continuing claims came in higher than expected. Housing starts also were a slight disappointment since "more" was expected of the numbers. It was still positive, lead by starts for individual homes, but the multifamily component dragged the overall
number down.
Fed Chairman Ben Bernanke spoke on Friday and said that the recesssion has bottomed out and recovery is on the way. I would say this depends on who you talk to. Traders on Wall Street may be feeling better but the average American would disagree. Wages are flat and people are still having trouble finding work. People are saving more (not a bad thing) but their feelings about the future are kind of grim, especially when it comes to jobs. It was also announced today that Bernanke will have his term renewed by President Obama. The markets prefer continuity, so this news should be well received.
With all this mixed information rates improved last week but we have a lot coming out this week, so I recommend locking short term deals of 30 days or less.
Consumer Confidence numbers were released today and we saw some positive numbers that stopped two consecutive months of decline. This report reflects consumers feelings about the future, especially is relation to employment. New Home Sales will be released tomorrow and the consensus is we should positive but not overwhelming numbers. GDP and Jobless Claims will be released Thursday and these are always closely watched. GDP is expected to show a -1% contraction for the second quarter after -6.4% for the first, so that seems to be heading in the right direction. Consumer Sentiment, which is directly related to consumer spending, will be released Friday.
Thanks for reading and have a great week!
Mike
Mike Haeffner
Certified Mortgage Planner
1st Preference Mortgage Corp.
Cell (410) 375-3868
Fax (301) 363-8510
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