Market Monitor March 4, 2011


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March 4th data

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Market Monitor March 4, 2011

  1. 1. I s su e 12 , Vo lu me 9 / Mar c h 4 , 20 1 1Optimism on the Horizon The Week Ahead -> The “Keys”Tim McLaughlin - Light week of economic data as quarter end approaches Last week, Fannie Mae released their National Housing Date Economic Release Prediction LastSurvey for 4Q10. This comprehensive report and surveyshowed that the majority of Americans surveyed were upbeatand optimistic about the housing sector as compared to where 3/7 Consumer Credit $4.70B $6.10Bwe were 12 to 24 months ago. 3/8 NFIB Small Business Opt - 94.1 The survey showed that Americans are more confident 3/8 IBD/TIPP Eco Optimism - 50.9about the stability of home prices than they were at thebeginning of 2010, even though there are some lingering 3/9 MBA Mortgage Applications - -6.5%concerns about the acceleration of the economy. If fact, overthree-quarters of the respondents (78 percent) believe 3/9 Wholesale Inventories 1.0% 1.0%housing prices will hold steady or increase over the nexttwelve months. 3/10 Initial Jobless Claims - 368K 3/10 Continuing Claims - 3774KOther takeaways: 3/10 Trade Balance -$41.0B -$40.6B Younger Americans are generally more positive about owning a home than the general population. 59 percent of 3/10 BB Consumer Comfort - -39.3 Generation Y (ages 18-34) believes buying a home has a lot of potential as an investment. 3/10 Monthly Budget Statement -$235.0B - As stated above, 26% of the general population thinks 3/11 Advance Retail Sales 0.6% 0.3% housing prices will increase over the next 12 months, with an additional 52% thinking that housing prices will remain 3/11 less Autos 0.6% 0.3% about the same. 3/11 less Autos and Gas 0.4% 0.2% On average, members of the survey anticipate home 3/11 U of Michigan Confidence 76.0 77.5 prices to increase 0.4% over the next 12 months, while the same subset expects rental prices to increase 2.8% 3/11 JOLTs Job Openings - 3063 over the same time period. The expectation that rental increases will far outpace home price increases was 3/11 Business Inventories 0.7% 0.8% prevalent with surveyors over the next five years, in fact. One in four Americans said they would probably buy a Secondary Marketing Takeaways: Seeing rates home in the next three years (both current homeowners hover around the high 4% range as conflicting forces push and non-homeowners), and one in three Hispanics and rates slowly down then slowly back up. On one hand, you African Americans were of this thought process. have oil prices sky rocking and global economic concerns in Libya, on the other hand, you have initial jobless claims One interesting (and probably obvious) fact: poor credit is coming in with the lowest reported number in almost three the number one stumbling block keeping potential years, and Greenspan stating at Congressional hearings borrowers from owning a home. that a third round of financial stimulus is “not out of the question”. The first quarter has been all about range Interested in getting ahead of the consensus and acquiring trading, with rates bouncing back and forth better 4.75%that home today? Interested in researching what your credit and 5.25%. Short term expectations are an anticipatedlooks like or what fixes to make to your credit structure for continuum of this trend, as both positive and negativeapproval? Interested in investment properties, with expected news blankets the headlines.increases in rental prices? We can help…ask us how! Mortgage Access Corp. d/b/a Weichert Financial Services, Executive Offices, 225 Littleton Road, Morris Plains, NJ 07950. 1-800-829-CASH. NMLS Company ID: 2731. Licensed by the NJ Dept of Banking and Insurance. Licensed Mortgage Banker with the State Dept of Banking in NY and CT. Licensed by the Pennsylvania Department of Banking, Mortgage Lender 21042. Licensed Lender in AK, AR, DE, MD, D.C., GA, ME, MI, MN, WI, IA, IL, IN, LA, VT, FL, WV, RI, KY, NC, ID, MS, NE, WY, OK,TN, WA. Licensed by the Virginia State Corporation Commission, License #ML105. Licensed Mortgage Lender in the Commonwealth of Massachusetts. License #ML1713, Certificate #43155. Certificate of Authority to transact business in CO, SC. Registered Mortgage Lender in TX. Licensed with the Financial Institutions Division in New Mexico, License # 01297. Licensed by the Department of Corporations under the California Residential Mortgage Lending Act. Licensed Mortgage Broker and Lender Ohio. Licensed Loan Broker and Lender Rhode Island. Kansas Licensed Mortgage Company, License #MC.0001229. Licensed by the New Hampshire Banking Department, License # 8714-MB. Licensed Oregon Mortgage Lender License #ML2528. Weichert Financial Services arranges loans with third-party providers.