1. Weichert Financial Services
Market Monitor
Issu e 1 1 , V o l u m e 20 / Ma y 2 1 , 2 0 10
Rally, Rally, Rally…
5/25 S&P/CS Home Price Index - 144.0
Tim McLaughlin
5/25 S&P/CS 20 City (YoY) -0.40% -0.10%
A couple of weeks back, we spent some time talking about 5/25 S&P/CS US HPI - 136.1
the situation in Greece, the impact on the European community,
and the global economic impact both here at home and abroad. 5/25 S&P/CS US HPI (YoY) - -2.5%
What we have seen transpire in the two weeks since is a broad-
based rally in the Fixed Income sector, as investors around the 5/25 Richmond Fed Manufacturing 25 30
globe look for a safe haven for investments and cash until this
situation simmers down and settles in. When investors look for 5/25 Consumer Confidence 59.0 57.9
safety, the safest instrument they flock to is US Treasuries. Next
5/25 House Price Index (MoM) - -0.2%
on the pecking order: Mortgage Backed Securities (MBS). And
over the past two weeks, there were is a lot of investors looking 5/25 House Price Purchase (QoQ) - -0.1%
for safety given the performance of these two asset classes.
5/25 ABC Consumer Confidence - -44
There was much concern (and longer term, there still is, to
some degree) about what would happen to mortgage interest 5/26 MBA Mortgage Applications - 1.5%
rates once the Fed and Treasury halted their MBS purchase
program at the end of March. What we have seen transpire over 5/26 Durable Goods Orders 1.4% -1.2%
the past six weeks is international concerns driving a lot of
5/26 ex Transportation 0.6% 3.7%
money both off the sidelines and from other investment classes
and into both Treasuries and MBS investment vehicles. 5/26 New Home Sales 420K 411K
The good news is that 30 year fixed rate mortgage rates are 5/26 New Home Sales (MoM) 2.2% 26.9%
back into the high 4% range, 10 and 15 year fixed mortgages
are in the low 4% range, and hybrid ARM’s are in the high 3% 5/27 GDP (QoQ) 3.4% 3.2%
range with points paid. The not so good news: no one is sure
how long the rally will sustain, and how long rates can maintain 5/27 Personal Consumption - 3.6%
these low levels. So if you are in spring purchase market, or
5/27 GDP Price Index 0.9% 0.9%
haven’t refinanced yet, this may very well be your last call.
Weichert Financial can help you capitalize on this scenario..ask 5/27 Core PCE (QoQ) 0.6% 0.6%
us how.
5/27 Initial Jobless Claims - 471K
5/27 Continuing Claims - 4625K
5/28 Personal Income 0.5% 0.3%
The Week Ahead -> The “Keys” 5/28 Personal Spending 0.3% 0.6%
- Lots of housing data as markets continue to rally
5/28 PCE Deflator (YoY) - 2.0%
Date Economic Release Prediction Last 5/28 PCE Core (MoM) 0.1% 0.1%
5/24 Chicago Fed Nat Activity - -0.07 5/28 PCE Core (YoY) 1.2% 1.3%
5/24 Existing Home Sales 5.60M 5.35M 5/28 Chicago Purchasing Mgrs 62.1 63.8
5/24 Existing Home Sales (MoM) 4.7% 6.8% 5/28 U of Michigan Confidence 73.5 73.3
5/25 S&P/CS Composite 20 (YoY) 2.4% 0.6% 5/28 NAPM – Milwaukee - 66.0
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At the date of this printing all information is deemed reliable but not guaranteed. This publication is a service to our clients and friends. It is designed only to give general information on the topics
actually covered. It is not intended to replace tax, legal or financial advice, for which you are encouraged to seek a competent professional advisor. Weichert Financial Services Executive Offices:
225 Littleton Road, Morris Plains, NJ 07950. 1-800-829-CASH. An Affiliate of Weichert, Realtors®. Licensed Mortgage Banker with State Department of Banking: NJ, NY, CT, and PA. Licensed
Lender: DE, MD, VA, DC, AK, TX, and WV. An Equal Housing Lender.