Monday, January 16, 2012

Appraisal Info for Hardin and Meade County

Thanks go out to Josh Hay for providing us with this information.  It's interesting to see how much of a global economy we have moved into when the European debt crisis has repercussions in our markets.  
MARKET COMMENT
Mortgage bond prices were higher last week which helped mortgage interest rates improve. The Euro debt crisis dominated trading as market direction swung rapidly on news articles throughout the week. Last Tuesday, Fitch Ratings reported that French triple A credit was safe. Spain and Italy had decent debt auctions. These events kept MBS prices in check early in the week. Fortunately, higher than expected jobless claims Thursday and S&P Ratings downgrade rumors for France on Friday pushed MBS prices in the right direction. Mortgage bonds ended the week better by approximately 3/8 to 1/2 of a discount point.
LOOKING AHEAD
Economic
Indicator
Release
Date and Time
Consensus
Estimate
Analysis
Martin Luther King DayMonday,
Jan. 16 -
-Important. Extended holiday weekend may result in market volatility when trading resumes Tuesday.
Producer Price IndexWednesday,
Jan. 18,
8:30 am, et
Up 0.3%,
Core up 0.1%
Important. An indication of inflationary pressures at the producer level. Weaker figures may lead to lower rates.
Industrial ProductionWednesday,
Jan. 18,
9:15 am, et
Up 0.1%Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.
Capacity UtilizationWednesday,
Jan. 18,
9:15 am, et
77.7%Important. A figure above 85% is viewed as inflationary. Weaker figure may lead to lower rates.
Weekly Jobless ClaimsThursday,
Jan. 19,
8:30 am, et
392kImportant. An indication of employment. Higher claims may result in lower rates.
Consumer Price IndexThursday,
Jan. 19,
8:30 am, et
Up 0.2%,
Core up 0.1%
Important. A measure of inflation at the consumer level. Weaker figures may lead to lower rates.
Housing StartsThursday,
Jan. 19,
8:30 am, et
655kImportant. A measure of housing sector strength. Weakness may lead to lower rates.
Philadelphia Fed SurveyThursday,
Jan. 19,
10:00 am, et
8.9Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.
10-year Treasury TIPS AuctionThursday,
Jan. 19,
1:15 pm, et
NoneImportant. TIPS will be auctioned. Strong demand may lead to lower mortgage rates.
EUROPEAN TURMOIL
The newswires were full of European downgrade rumors last Friday as French news reports indicated France and four other countries would soon see their credit ratings downgraded. Spain, Portugal, and Italy were rumored to face a two notch credit rating cut while France would lose triple A rating. This would likely put additional pressure on Germany despite the fact it is expected to maintain triple A status. The European Financial Stability Facility is a special entity created to help fight the European debt crisis. The EFSF relies heavily on France and Germany to fund the loans it provides to troubled eurozone countries.
This news came amid earlier reports that Banks holding Greek debt failed to come to an agreement on a write-down and reignited fears of a Greek default. Charles Dallara, the head of the Institute of International Finance which is representing the banks in EU negotiations, indicated "there is no agreement on any element of a deal.” Things don't look good for Greece.
The terrible news out of Europe has some positive news for the US as mortgage interest rates benefit from flight to quality buying in the short term. Now is a great time to take advantage of the historically low rates.
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