If there was ever a time since the great recession to purchase a home, now is that time. Mortgage rates have been going down and home prices are more affordable.
In reports from the housing industry, buyers are coming out of the woodwork to purchase and refinance. This a good start for the housing industry in 2015.
This is in complete contrast to events last year where the harsh winter stifled real estate activity.
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In recent weeks we have seen mortgage rates drop primarily due to concerns overseas and not in the United States. Although world economic events have the potential to negatively affect the U.S. economy, thus far there has been little of that taking place.
The stock market has been losing a little ground lately as investors pull their money from stocks and place them in the safe haven of U.S. government bonds. Not only is it American investors doing so, money is coming in from all over the world.
It is amazing that no matter what seems to happen in America, it appears that when it comes to finding a safe place to keep your money, the U.S. government is still considered the gold standard for investors.
A surprise to the employment sector came with the release on Thursday with the latest first time jobless
claims. Unexpectedly claims jumped 19,000 up to 316,000. This is the highest we have seen since the month of September.
There was no real indication as to the cause for the increase and most people are taking a wait and see attitude in observing employment trends. What is strange is that multiple business news commentaries have stated that recent employer interviews have all been very positive towards indicating that hiring will increase in 2015.
Inflation at the producer level continued to decline. The main driver of the drop is the cost of energy. If you have made a trip to the gas station in recent weeks you have been pleasantly surprised as to how much less it costs to fill your tank these days.
Surprisingly the report on retail sales released on Wednesday showed that sales declined in December by 0.9 percent. This report came in the opposite direction of the prior month which showed an increase of 0.4 percent, and October’s 0.3 percent gain.
Do you have a news tip? Call us at (661) 298-1220, or drop us a line at community@hometownstation.com.Next week’s potential market moving reports:
Monday January 19th – Martin Luther King Jr. Day 2013 All Markets Closed
Tuesday January 20th – Housing Market Index
Wednesday January 21st – MBA Applications & Housing Starts
Thursday January 22nd – First Time Jobless Claims, FHFA House Price Index
Friday January 23rd – Existing Home Sales
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.