News for Prescott AZ - AmericanTowns.com

Wednesday, February 29, 2012

Weekly Market Update from Curt and Shannon

 

 

 

February 21, 2012

 



The Dalpiaz Team
Curt and Shannon
141 S. McCormick Street Suite #107
Prescott, AZ 86303
Ph-928-777-8971
curt.dalpiaz@academy.cc
shannon.dalpiaz@academy.cc
LO License-#0912851 LO NMLS-#151454


Hello Brad,

Winston Churchill once said, 'Give us the tools, and we will finish the job.' When it comes to completing a successful home sale, there's no better tool than a great mortgage. Low rates make this one of the best buyer's markets in history.

If you have questions or need assistance, please contact me. It's always a pleasure to help.

Sincerely,

Curt and Shannon
curt.dalpiaz@AcademyMortgage.com

 

 

 

Greek Deal on Monday?

 

Highlights

Average 30 yr fixed rate

Stocks (Weekly)

 

January Housing Starts rose to the highest level since October 2008

Weekly Jobless Claims fell to the lowest level since March 2008

The Dow stock index climbed to multi-year highs

The Treasury will auction $99 billion in 2-yr, 5-yr, and 7-yr securities this week

 

This week: +0.05%

 

Dow: 12,900 +150

 

 

 

Last week: -0.01%

 

NASDAQ: 2,950 +50

 

 

Increased optimism that a Greek bailout package will be approved on Monday caused investors to shift to riskier assets, which was negative for mortgage rates. Mixed US growth and inflation data had little net impact. Mortgage rates ended last week a little higher.

After several weeks of uncertainty, it appears that European officials are close to reaching agreement on a much needed bailout package for Greece. Despite strong public opposition, Greek leaders took a big step by passing a budget with new austerity measures. Comments from euro zone leaders expressed broad support for providing additional aid, which Greece needs to avoid a default on debt maturing on March 20. Prior to this week, it appeared that the option to let Greece default and possibly leave the European Union was under serious consideration, but investors now believe that European leaders will not let this happen. An important meeting is scheduled for Monday, and investors expect a deal to be announced. In anticipation, investors shifted to riskier assets, and relatively safer assets such as mortgage-backed securities (MBS) dropped in price, pushing mortgage rates higher.

The inflation data released last week showed that core inflation rates (which exclude food and energy) have continued to rise. Core CPI inflation was 2.3% higher than one year ago, which was the highest annual rate since September 2008. Fed officials forecast that core inflation levels will moderate later in the year. If it unexpectedly continues to move higher, however, the impact could be large. Higher inflation is negative for mortgage rates. In addition, it would be more difficult for the Fed to maintain its current loose monetary policy. Investors will be closely watching core inflation levels in coming months to see if the Fed's forecast proves correct.





Monday's meeting between Greek and euro zone officials will be the most highly anticipated economic event next week. Investors expect that a deal will be reached to provide additional aid to Greece. It will be a light week for US economic data. Existing Home Sales will be released on Wednesday. New Home Sales and Consumer Sentiment will come out on Friday. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday. Mortgage markets will be closed on Monday in observance of Presidents Day.

 

 

 

The market commentary material provided is from a third party vendor, MBSQuoteline, and is not necessarily the opinions of the sender or the organization they represent. This information is intended for educational purposes only and should not be construed as investment and/or mortgage advice. Additionally, the material is deemed to be accurate and reliable, but there is no guarantee it is without error.

 

All products are subject to credit and property approval. Program terms and conditions subject to change without notice. Not all products are available in all states or amounts. Other restrictions and limitations apply.

Academy Mortgage Corporation
1220 East 7800 South
Sandy, UT 84094
p. 801-233-3700

Equal Housing Lender


Company NMLS ID # 3113 LO License #912852 Company License # 0904081 LO NMLS #243638


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