Here is the latest Mortgage Market Update from Cheri Costello of HomeServices Lending:
"IT REQUIRES A GREAT DEAL OF BOLDNESS AND A GREAT DEAL OF CAUTION TO MAKE A GREAT FORTUNE." Ralph Waldo Emerson.
And last week's headlines contained a mix of items to inspire both boldness and caution. Here are the highlights:
Friday's news showed that consumers are being understandably cautious with their finances, as the Personal Savings rate remained above 4% once again in February and among the highest savings levels seen in a decade. It wasn't that long ago - mid 2005 - that the US had a negative savings rate - that's right, as a nation, we regularly spent more than we made.
Meanwhile, the government continues to make bold moves to help our economy. On Monday, Treasury Secretary Geithner unveiled a plan to remove toxic assets from financial institutions by using money from the $700 Billion TARP fund. The government will help mitigate the risk by offering private investors Billions of dollars in low-interest loans to help finance the purchases. Indeed, it's a bold strategy - let's see if it pays off!
And...there's room for cautious optimism on the economy, as good news was noted on several fronts last week. The housing market received good news when both Existing Home Sales and New Home Sales came in stronger than expected. Additionally, Durable Goods Orders for February came in better than expected, showing the first increase in six months, and the Core Personal Consumption Expenditure Index (Core PCE) showed inflation is presently at tolerable levels. Plus, the US Dollar received a boost when China said it will continue to purchase US Treasuries.
Bonds were jostled around mid-week, but home loan rates ultimately ended the week very close to where they began...near historic lows. Give me a call or email me if you want to discuss whether now may be the perfect time for you to add a bit to your own fortune through a smart purchase or refi.
Cheri Costello
Direct: 770-795-0353
Cell: 541-908-1017
cheri.costello@hsl-ga.com
Monday, March 30, 2009
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