Today
It is forecast to be Partly Cloudy at 10:00 PM PST on December 25, 2014
Partly Cloudy
57°/37°
Home » Santa Clarita News » SCV Your Home Inside And Out » Real Estate & Market Report: August 23, 2013
Real Estate & Market Report: August 23, 2013

Real Estate & Market Report: August 23, 2013

By: Fred Arnold

Existing home sales jumped 6.5% in July which was far beyond any analysts expectations.  The National Association of Realtors believes that the jump was primarily due to panic in the market over rising interest rates.  It is believed that many fence sitting home buyers have been jumping into the market to make their purchases because of the belief that mortgage rates will continue to rise.  In recent times a jump of this magnitude may have been attributed to either seller concessions or a government stimulus program for home buying.  No such events have occurred to impact home purchases so interest rates seems to be the clear cause of the home sales increase.


Don’t miss a thing. Get breaking Santa Clarita news alerts delivered right to your inbox.


The supply of homes coming on the market is currently keeping pace with sales keeping inventory numbers virtually unchanged.  The current supply of home remains at 5.1 months which is the same as June and only slightly higher than May’s inventory number of 5 months. 

Mortgage rates rose very sharply in the week of August 16th as well as this week.  The cause of rising interest rates is primarily based upon the belief that the Fed is getting closer and closer to tapering their economic stimulus program.  It is this program that has been keeping mortgage rates artificially low. 

Although the Fed has not started to ease the program, many investors have been selling their bond holdings in order to minimize their losses when the Fed does begin tapering. As interest rates rise the value of bonds deteriorates which means investors could suffer significant losses if rates rise rapidly and they don’t sell their bond holdings.

On Wednesday the release of the FOMC minutes from the most recent committee meeting indicates that the Fed is cautious about cutting back on their stimulus program in the near term.  However the overall indication is that the Fed will reduce their asset purchases if the recovery continues on track.  It appears that the September meeting could be a turning point for Fed policy.

The data released in the remainder of August and early September will be the guide for the next action to be taken by the Fed. Based upon the minutes of the most recent Fed meeting, it appears that there is heavy debate within the members on what to do in regard to economic stimulus.  It seems that with each passing month there is more separation between members that want to end the program versus those that want it to continue.


Do you have a news tip? Call us at (661) 298-1220, or drop us a line at community@hometownstation.com.


The Federal Housing Finance Agency reported that home prices continue to rise rapidly.  The most recent FHFA report shows that home prices increased .7% in the month of June. 

  • Market moving reports for next week are:
  • Monday August 26th – Durable Goods Orders
  • Tuesday August 27th – S&P Case-Shiller Home Price Index
  • Wednesday August 28th – MBA Applications and Pending Home Sales
  • Thursday August 29th – First Time Jobless Claims and GDP
  • Friday August 30th – Consumer Sentiment                                                     

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



Source: Santa Clarita News


Real Estate & Market Report: August 23, 2013

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

About hometown