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| Housing Starts Make Its Largest Leap Since 2004 Posted: 21 Jul 2009 08:00 AM PDT  Housing Starts soared in June, thumping analyst expectations for the second straight month. A "housing start" is a new home on which construction has started. Last month's jump in single-family starts is the largest one-month jump since 2004. To Wall Street, June's figures are the latest signal that the country's housing markets may be on the mend. For home sellers, however, the news may not be so rosy. With more homes expected to come on the market, price competition among sellers could intensify and -- all things equal -- that would push sales prices lower. So far in 2009, that hasn't happened. As home supply has grown, it's been met by off-setting buyer demand. Spurred by low mortgage rates and an $8,000 first-time homebuyer tax credit, Americans appear to find today's home buying conditions somewhat ideal. As a result, purchase activity has been strong and first-time home buyers now account for close to 30 percent of existing home sales. Rising Housing Starts can be a double-edged sword. It shows strength that builders are more optimistic about the economy, but too much optimism can lead to a glut of unsold homes and that could reverse the recovery's momentum.  |
| What's Ahead For Mortgage Rates This Week : July 20, 2009 Posted: 20 Jul 2009 08:00 AM PDT
The Dow Jones Industrial Average was up 7 percent. Mortgage rates, unfortunately, didn't fare as well. As the first week since June in which mortgage rates rose, rates were up by a lot. Mostly for three reasons. The week's first big mortgage rate bump came Tuesday, right after Goldman Sachs released its blowout quarterly numbers. As one of the world's largest financial firms, Goldman's strong showing hinted that the financial crisis may finally be finished. Next, rates were impacted by the release of the Fed Minutes from its June meeting. In the report, it was revealed that Ben Bernanke & Co raised the economic forecast for both 2009 and 2010, noting that the recession should be ending soon. Lastly, June data showed that Retail Sales is expanding and that jobless claims are falling -- two potential positives for the U.S. economy that relies so heavily on consumer spending. This week, without much data, the mortgage market should continue to take its cue from the stock market. If stocks improve, rates are expected to worsen. And vice versa. The week's key events are Fed Chairman Bernanke's Tuesday testimony on Capitol Hill and Thursday's Existing Home Sales data. Mortgage rates remain volatile so if you're offered a rate that comfortably fits your household budget, consider locking in before the market can change.  |
Mortgage markets had an awful week last week as a combination of strong economic data and stand-out earnings results led investors into more risky investments. | You are subscribed to email updates from Atlanta Real Estate -- Peter Bright, Mortgage Blogger To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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