Stock market analysts and news commentators always look for an explanation as to the movements of the stock market and the behavior of investors at any given time

• The see saw of the market this week has been tied mostly to what is happening with Greece.

If you have been following the stock market this week you would think that, depending on the hour of any given day, the Greece debt crisis is either going to plunge the world economy into the ocean, or it is not a big deal.

• The looming Greek debt crisis has not changed in the last week and the world financial markets recognize that the likelihood of Greece leaving the Eurozone is quite high. Yet on any given day the market is either in a panic or a wait and see mode.
• The behavior of investors, and worse the analysts seeking to explain every little nuance of movement in the markets, is creating a very unstable market in it of itself.

At this point and time the Greek government has submitted a bailout plan

• Will likely be the last opportunity for Greece to avoid a virtual complete collapse of their economy
• Hope is not high on the acceptance of this new proposal by their debtors
• The good news is that the Eurozone countries seem prepared to deal with the meltdown if it comes to be and that the world economy is positioned to avert a global financial disaster.

Real Estate & Market Report: July 10, 2015

Back here in the U.S., the Federal Open Market Committee (FOMC) has indicated that they are becoming more and more comfortable with the decision to begin raising interest rates

• No timetable has been given as to when the first rate hike will occur
• The indication from the most recent FOMC meeting is that more of the members are comfortable with the idea to raise rates.
• The last FOMC meeting indicated that some of the members were ready to raise rates.
• Other members were not quite as ready but they are seeing that the economic indicators are falling in line with a rate hike in the near future.

The only thing preventing the FOMC from raising rates at this point is that the majority of the members would like to see just a little more improvement in employment growth.

The real estate markets in most parts of the country seem to be the strongest they have been since the great recession.

• Real estate and mortgage professionals remain quite busy and property values continue to rise at a steady pace.
• Mortgage applications jumped last week for purchases by 7.0 percent.

Next week’s potential market moving reports:

• Tuesday July 14th – Retail Sales
• Wednesday July 15th – MBA Applications, Producer Price Index & Industrial Production
• Thursday July 16th – First Time Jobless Claims
• Friday July 17th – Consumer Price Index and Housing Starts

As your mortgage professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at (661) 505-4300.