December 2012 RSS Feed

CLIFF WALKING... Investors basically fixated on Washington's fiscal cliff negotiations. The week began optimistically, and stocks followed suit, heading upward dramatically. But later in the week, a resolution to the tax and spending issues looked less certain, and stock prices faded. Congress then went into recess for the holiday, but planned to return this Thursday if there's a deal of some sort to consider. Nonetheless, all three stock market indexes posted gains for the week.

Investors were encouraged when Q3 GDP was revised up to 3.1% annual growth from the prior 2.7% estimate. The Philadelphia Fed Manufacturing Index reported expansion in December, although the New York Empire Manufacturing Index indicated contraction. Personal Income was up in…

INFO THAT HITS US WHERE WE LIVE... Last week, the path to recovery in the housing market required us to step over the puddle of a 3% dip in Housing Starts for November. Yet that path has also taken us to an annual rate of 861,000 units, putting overall starts UP 21.6% versus a year ago, and single family starts UP 22.8%. New Building Permits were UP 3.6% in November, so no puddles in that path where single-family permits are UP 25.3% over a year ago. No wonder the NAHB homebuilder confidence index gained for the eighth month in a row.

Data over on the existing home front was even rosier. Existing Home Sales went UP 5.9% in November, crossing the 5 million unit threshold, at 5.04 million homes. Those sales are UP 14.5% from a year ago. The median price is…

In spite of this week's Fed announcement, there was a bit of a sell-off in long term bonds. The FNMA 3.5% bond we watch ended the week down .08, at $106.15. Nonetheless, the Fed did signal that the measures they're taking to keep interest rates low will remain in place for a good long while. So national average mortgage rates stayed at or near record lows. The Mortgage Bankers Association reported demand for purchase loans gained for the fifth week in a row, up 9% over a year ago. 

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HOME BUILDING, EXISTING HOME SALES, MANUFACTURING, GDP, INFLATION... November Housing Starts are forecast down a little, although Building Permits are expected up for the month. Existing Home Sales should be up in November, inching ever closer to the 5 million mark. Manufacturing should look better, with the NY Empire and Philadelphia Fed Indexes both back in positive growth territory.

Thursday, the Third Estimate of Q3 GDP is predicted to remain at 2.7%, putting our economic growth just below where it needs to be. Friday's Personal Income and Spending are both expected up for November, with Core PCE Prices showing inflation still under control.

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UNCERTAINTY TAKES ITS TOLL... There are just two weeks to go for politicians to broker a deal to stop the country from going over a fiscal cliff of draconian tax hikes and spending cuts. Unfortunately, Washington isn't proceeding with much urgency. Investors reacted poorly to the uncertainty as all three major stock indexes slipped for the week. Not helping things, the economic data was mixed, as inflation cooled and Industrial Production beat expectations, but Retail Sales missed consensus targets.

The big news came out of the Fed meeting on Wednesday. The Fed Funds Rate wasn't touched, but the FOMC Committee announced it would now keep the Rate at these super low levels as long as unemployment stays above 6.5%. Most economists think that will be a very…

Yesterday after the close of trading (12/10/2012), MBS had a monthly coupon rollover.

The effect was -17.83 basis points. When the rollover happens, this months coupon is closed out and all new loans are placed into the next months coupon. This does not effect rate sheets or pricing. However, any chart patterns that arise from the rollover must be taken with a grain of salt.

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http://www.homesforsacramento.com/listing/12070220-145-lakewood-ln-tahoe-city-ca-96145/ 

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Click Here for the Interest Rate/Case Shiller Home Price Indices Chart 

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The holiday season is upon us!  Many homes and neighborhoods are decorated to the hilt.  There's nothing like putting the kids in their jammies, hopping in the car and taking them for that annual Christmas light tour.  Here's a list of all the great places in Sac-Placer-El Dorado Counties. 

Antelope Christmas Lights 4025 Diane Dr 95843 Lighted Gingerbread home bring toy or food for needy kids-Santa may show up 4825 Clydebank Way 95843 Lite show to music FM 88.7 6:00 to 10:30pm 6635 Sienna Hills Way 95843 Light show to music FM 90.7 8213 Rockbury Way 95843 Check out whose pulling Santa’s sleigh…creative 8776 Palmerson Dr 95843

Retro making sure Santa sees this home while flying by Carmichael Christmas Lights 8630 Fair Oaks Blvd 95608 Quarter million…