This is some great information given by Mayor Deke Copenhaver. How does the Augusta area rate among the nation in the housing and the economic sector? Well, here it is:
-Brookings Institution Metro Monitor - 18th among the strongest performances across 4 indicators
-Miliken Institute/Greenstreet Real Estate Partners - Augusta is ranked #82 Best Performing Cities Index (components include job, wages & salary growth),
-Forbes #5 in the nation "Best Bang For the Bucks" Cities
-Forbes #22 Fastest Recovering Cities in the America
-Business Week #23 "Forty Strongest Metro Economics"
-Business Week #11 "America's 25 Next Recovering Job Markets"
-Business Week #6 "Strongest Building Markets for Housing"
-Business Week #21 "30 Strongest Housing Markets in the United States"
-Forbes #44 "100 Cities Where Americans Are Getting Richer"-Relocate America, "Top 100 Cities to Live" 2009
Mortgage Market News for the week ending April 16, 2010
Compliments of
John Girardeau
Southern Mortgage Company
PHONE:
(803) 642-6448
southernmortgage@bellsouth.net<mailto:southernmortgage@bellsouth.net>
PO Box 2676
Aiken, SC 29802
Events This Week:
Inflation Low
Retail Sales Higher
Housing Starts Rose
Manufacturing Mixed
________________________________
Events Next Week:
Mon 4/19
Leading Indicators
Thur 4/22
PPI
Existing Sales
Fri 4/23
Durable Orders
New Home Sales
Low Inflation Benefits Mortgage Markets
This week's economic data and comments from Fed officials painted a picture of a gradually improving economy with very low inflation. March Core CPI inflation rose at a tame 1.1% annual rate. This economic environment is favorable for bond markets, and mortgage rates ended the week a little lower.
While mortgage rates have dropped over the last two weeks, the move lower has not been a straight line down. Mortgage rates have been fluctuating sharply from day to day, and even hour to hour this month. Volatility in mortgage markets has increased significantly since the end of the Fed's MBS purchase program on March 31. With the Fed steadily in the market in just one direction (purchasing, but never selling), other investors were generally reluctant to take opposing positions. Now that the Fed is on the sidelines, the market has returned to more normal conditions, meaning that investors freely react to economic news and changing sentiment.
This week's housing sector reflected improvement. March Housing Starts exceeded expectations, rising 2% from February to the highest level since November 2008. Housing Starts were 20% higher than one year ago. Building Permits, a leading indicator, also beat the consensus forecast. The April NAHB Homebuilder confidence index jumped to the highest level since September 2009 as home buyers take advantage of tax credits set to expire soon.
Also Notable:
* The Fed Beige Book report indicated improving economic conditions in all but one of the twelve regions
* Bernanke stated that he expects the labor market to slowly recover
* Goldman Sachs was charged with fraud on subprime mortgages by the SEC
* The Dow stock index reached an 18-month high
[cid:B559FA18D79C49BFBF6F5A062132436C@johng]
Average 30 yr fixed rate:
Last week: -0.05%
This week: -0.10%
Stocks (weekly):
Dow: 11,000 +50
NASDAQ: 2,475 +25
Week Ahead
Next week, the economic data will be stacked at the end of the week. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Thursday. Existing Home Sales also will be released on Thursday. Durable Orders, an important indicator of economic activity, will come out on Friday, along with New Home Sales. Leading Indicators will round out the schedule on Monday.
To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com<http://www.mbsquoteline.com>
To learn more about the newsletter, please call 800-627-1077
All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.
This email was sent from John Girardeau at Southern Mortgage Company. To unsubscribe, email southernmortgage@bellsouth.net<mailto:southernmortgage@bellsouth.net>.
[cid:93278A24E7674A0F9DA0E0BE396CDD9C@johng]
Mortgage Time
Mortgage Market News for the week ending April 2, 2010
Compliments of
John Girardeau
Southern Mortgage Company
PHONE:
(803) 642-6448
southernmortgage@bellsouth.net<mailto:southernmortgage@bellsouth.net>
PO Box 2676
Aiken, SC 29802
Events This Week:
Employment Rose
Inflation Low
Confidence Higher
Manufacturing Mixed
________________________________
Events Next Week:
Mon 4/5
ISM Services
Pending Sales
Tues 4/6
Fed Minutes
3-yr Auction
Wed 4/7
10-yr Auction
Thur 4/8
30-yr Auction
Mortgage Rates Rise After Jobs Data
Stronger than expected Employment data and the end of the Fed's MBS purchase program were negative for mortgage markets. Mortgage rates ended the week at the highest levels since January.
Investors viewed Friday's Employment report as positive for the economy, which means it was bad news for mortgage markets, and mortgage rates climbed after its release. Against a consensus forecast of 200K, the economy added 162K jobs in March, the highest level since March 2007. The Unemployment Rate remained at 9.7%. While the headline number fell a little short, other aspects of the data displayed a larger degree of unexpected strength. Hiring of census workers, a temporary boost, added just 48K jobs, which was far less than expected. Revisions to data from prior months added 62K jobs. The separate employment survey used to calculate the unemployment rate, which includes smaller companies, showed a higher level of job gains in March.
To support the economy, the Fed has purchased almost $1.25 trillion of MBS since the start of 2009, but the MBS purchase program ended on March 31. Forecasts for the impact on mortgage rates of reduced demand for MBS varied from slight to as much as a one percent rise. While mortgage rates rose this week, yields in other bond markets posted comparable increases, meaning that the effect of the end of the MBS purchase program was close to the lower end of the estimated range this week.
Also Notable:
* The 4-week average of Jobless Claims dropped to the lowest level since September 2008
* The Treasury will auction $74 billion in 3-yr, 10-yr, and 30-yr securities next week
* Oil prices rose to $85 per barrel, the highest level of the year
* The Fed purchased $6.0 billion in agency MBS during the final week of the program
[cid:16DD4D8FB4254F9FBF8EE4455C1F968E@johng]
Average 30 yr fixed rate:
Last week: +0.15%
This week: +0.10%
Stocks (weekly):
Dow: 10,925 +25
NASDAQ: 2,400 0
Week Ahead
It will be a light week for economic data next week. Pending Home Sales, a leading indicator for the housing market, will come out on Monday. ISM Services will also be released on Monday. The FOMC Minutes from the March 16 Fed meeting will be released on Tuesday. These detailed meeting notes often provide additional insight into the Fed's decisions. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday.
To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com<http://www.mbsquoteline.com>
To learn more about the newsletter, please call 800-627-1077
All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.
This email was sent from John Girardeau at Southern Mortgage Company. To unsubscribe, email southernmortgage@bellsouth.net<mailto:southernmortgage@bellsouth.net>.
FW: Mortgage Market News
[cid:6BA8E2BA1C0248108DB87A498B2244B0@johng] Mortgage Time
Mortgage Market News for the week ending March 26, 2010
Compliments of
John Girardeau
Southern Mortgage Company
PHONE:
(803) 642-6448
southernmortgage@bellsouth.net<mailto:southernmortgage@bellsouth.net>
PO Box 2676
Aiken, SC 29802
Events This Week:
Durable Orders Rose
Sentiment Higher
Home Sales Down
Manufacturing Mixed
________________________________
Events Next Week:
Mon 3/29
Personal Income
Wed 3/31
Chicago PMI
Thur 4/1
ISM Manuf.
Fri 4/2
Employment
Mortgage Rates Rise on Weak Auctions
A combination of factors was negative for mortgage markets this week, and mortgage rates ended higher. Large budget deficits and economic troubles in smaller European Union nations made bonds less attractive to global investors. In addition, stock market gains sent the Dow to an 18-month high, which pulled funds out of fixed income investments. Finally, with just one week remaining for the Fed's MBS purchase program, comments from Fed Chief Bernanke about potential future MBS sales added to the pressure in mortgage markets.
For months, investors have been concerned that the enormous supply of debt needed to fund US government spending would force yields on US Treasury securities to rise to attract purchasers. This is what took place this week. Demand was surprisingly weak at all of this week's record Treasury auctions, especially from foreign investors, and yields were pushed higher. Since mortgage-backed securities (MBS) compete for investors with Treasuries, MBS yields rose as well, pushing mortgage rates higher.
In a speech on Thursday, Fed Chief Bernanke added to the volatility in mortgage markets with his comments about the possible timing of future sales of MBS from the Fed's portfolio. To support the economy, the Fed has purchased almost $1.25 trillion of MBS since the start of 2009. The Fed has made clear from the start that it was a temporary measure and that it would eventually sell its MBS holdings when the economy was healthy enough. Earlier this month, Bernanke stated that he did not expect the Fed to sell assets "in the near term". On Thursday, however, his language changed a little. While Bernanke assured investors that MBS sales would be gradual and that they would only take place if the economy were strong enough to handle it, he opened the door for the start of Fed MBS sales at an earlier date than previously anticipated.
Also Notable:
* February Existing Home Sales fell 1%, while New Home Sales dropped 2%
* An agreement was reached for the EU and the IMF to bail out Greece if necessary
* The Dow stock index rose to a new high for the year
* The Fed purchased $8 billion in agency MBS, with about $7 billion more to go
[cid:91404766F15A462DA2204D1C50B82B9F@johng]
Average 30 yr fixed rate:
Last week: -0.02%
This week: +0.15%
Stocks (weekly):
Dow: 10,900 +150
NASDAQ: 2,400 +25
Week Ahead
The biggest economic event next week will be the important Employment report on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Early estimates are for an increase of about 200K jobs in March. Before the employment data, Personal Income will be released on Monday. The Chicago PMI will come out on Wednesday, and the ISM manufacturing index will be released on Thursday. Consumer Confidence, Construction Spending and Factory Orders will round out the schedule. In addition, the Treasury will announce the size of upcoming auctions on Thursday.
To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com<http://www.mbsquoteline.com>
To learn more about the newsletter, please call 800-627-1077
All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.
This email was sent from John Girardeau at Southern Mortgage Company. To unsubscribe, email southernmortgage@bellsouth.net<mailto:southernmortgage@bellsouth.net>.
The current buzz among the real estate industry, as well as the mortgage industry, is the question, or may I say the concern, of the condition of the real estate market after April 30. April 30 marks the expiration of the home-buyers tax credits and March 31 marks the end of Fed's mortgage-buying program. Both of these changes are expected to make a definite impact on the mortgage industry. The Augusta Chronicle recently published an article quoting the Associated Press:
"Concerns remain that home sales will weaken after March 31, when the Federal
Reserve is set to end its program to buy mortgage securities to keep home loan rates
low. Once that program ends, mortgage rates could rise. Adding to the worries, a
newly extended homebuyer tax credit is set to run out at the end of April. Once the
Fed's mortgage-buying program ends, analysts say rates could rise as high as 6
percent for 30-year loans."
How much of an impact these changes will make is unknown. The first quarter of 2010 has not been as strong a market as we normally experience, yet we are still hopeful.
As we look at our local real estate market at the close of 2009, our December, figures compared with November, for resales, show us an average list price down 9.25%, at $119.092; average days on the market up 6%, 144 days; and closings, down 6%, at 221. Our new construction market, since spring of 2009, has been experiencing an increase in sales: December shows average list price relatively unchanged, $196,422, days on the market up 2.5%, 160 days, and closings down 3%. The cost per square foot on new construction has dropped significantly since March, 2009, resulting in resale homes competing with new houses. Why this drop? MLS stats show us new construction inventory peaked in June, 2008 at 4172 active MLS listings. Material prices have dropped, so in an effort to sell off the high inventory of product, builders became willingly and able to work for lower rates.
Focusing on our current market, typically spring ushers in not only warmer weather, but a warming up of the real estate market. Listings are normally up and buyers slowly begin swarming the market. Though it is still a little early yet, so far this spring has been quite different. The Multiple Listing stats are showing:
MARKET COMPARISON REPORT OF 01-1-09 to 3-12-09 & 01-01-10 to 3-12-10
Residential Properties New & Resale Property:
2009 2010 Difference Percentage
Units Dollars Units Dollars Units Dollars Units Dollars
689 101.152,006 658 98.206,195 -31 -2,945,511 -4.50 -2.91
Note: the average sales price on these properties is $149,250 for the period in 2010, with that same time in 2009, the average being $146,810. These figures tell us that prices are down, which are a result of high inventory and most likely foreclosures in the market bringing down values. The first-time homebuyers tax credit helped to push up sales last fall, 2009, in the lower price points, but the new move-up buyer tax credit fell short of accomplishing which it was designed to do and that is increase sales in the higher price range, therefore, depleting the high inventory of homes on the market.
Remember, our local; real estate market is still quite steady compared to the rest of the nation. We remain hopeful. Though we have experienced drops, they are not really significant ones. There are some great real estate deals to be had. Stay informed. Knowledge is power. I will keep you updated.
[cid:FF0658D6CBD840319B331A87E77D5399@johng] Mortgage Time
Mortgage Market News for the week ending March 12, 2010
Compliments of
John Girardeau
Southern Mortgage Company
PHONE:
(803) 642-6448
southernmortgage@bellsouth.net<mailto:southernmortgage@bellsouth.net>
PO Box 2676
Aiken, SC 29802
Events This Week:
Retail Sales Rose
Trade Deficit Lower
Jobless Claims Fell
Sentiment Down
________________________________
Events Next Week:
Mon 3/15
Ind. Production
Tues 3/16
Fed Meeting
Housing Starts
Wed 3/17
PPI
Thur 3/18
CPI
Quiet Week for Mortgage Markets
During a very light week for economic news, the economic data and Treasury auctions contained few surprises and produced little reaction in mortgage markets. Mortgage rates ended the week nearly unchanged.
In early 2009, the Fed embarked on a $1.25 trillion mortgage-backed securities (MBS) purchase program to help keep mortgage rates low and stimulate the economy. The amount purchased varied from week to week, reaching a peak of $33.2 billion in the week of March 25, 2009. The Fed has been gradually reducing the size of its purchases at a pace consistent with a March 31 conclusion of the program, and the most recent weekly purchases have been down to around $10 billion.
As the date nears, the big question is what will happen when the MBS purchase program ends. This program is unprecedented, making the outcome difficult to predict, and forecasts vary widely. Estimates for the impact on mortgage rates from the conclusion of the program vary from an increase of one percent to no change. Those who predict higher mortgage rates point to a basic change in the fundamental supply and demand. The added demand from the Fed was widely credited with moving rates lower, and a decrease in demand would typically push rates higher. However, other economists argue that investors respond only to unexpected news. In this view, since the Fed has telegraphed the end of the program for months, there should be little reaction around March 31. The Fed itself has indicated that they expect a modest increase in mortgage rates due to the end of the program.
Also Notable:
* Despite major snowstorms in many regions, February Retail Sales increased
* The Labor Dept. announced that the number of job openings in January rose 8%
* Oil prices rose above $80 per barrel to the highest level since early January
* The Fed purchased $10 billion in agency MBS, with about $24 billion more to go
[cid:4D5F097A22EC4DBA82965D27779B19AF@johng]
Average 30 yr fixed rate:
Last week: 0.00%
This week: +0.01%
Stocks (weekly):
Dow: 10,600 +100
NASDAQ: 2,350 +50
Week Ahead
The big story next week will be Tuesday's Fed meeting. No change in the fed funds rate is expected, but any surprises in the Fed's statement could produce a large reaction. The most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Wednesday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Thursday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, Industrial Production, an important indicator of economic activity, will be released on Monday. Housing Starts are scheduled for Tuesday. Import Prices, Leading Indicators, and Philly Fed will round out a busy week.
To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com<http://www.mbsquoteline.com>
To learn more about the newsletter, please call 800-627-1077
All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.
This email was sent from John Girardeau at Southern Mortgage Company. To unsubscribe, email southernmortgage@bellsouth.net<mailto:southernmortgage@bellsouth.net>.
I great article on the housing market was published today in the Augusta Chronicle Business section. The article focused on high-priced homes and the length of time homes priced over $200k are on the market. This article helps the home owner to have a better understanding of what is going on in the housing market, particulary with higher priced properties. Take a look at this article at http://bit.ly/bB8Qgc.