Recapping the big news for real estate from the week ending 9-16-2013 and what we need to watch this week. Plus sharing links to some great housing information…
Last week was another somewhat slow week for real estate news other than the latest mortgage interest rates. And that wasn’t really Earth shattering news but more on that later!
News From the Fed
Last Tuesday, the Federal Reserve reported that consumer credit rose by $10.4 Billion in July. They also said that revolving credit fell by an annual rate of 2.60% as compared to an annual decrease of 5.20% in June. Non-revolving consumer credit such as vehicle and education loans rose at an annual rate of 7.40%.
Well, last week’s Mortgage Rate Update wasn’t really that bad when you look at the BIG picture. Despite the MBA reporting that rates increased and Freddie saying that mortgage rates were unchanged from the previous week, there is a much bigger issue.
Disappointing Retail Sales Numbers
We really couldn’t say TGIF last Friday when we found out the latest numbers for retail sales were below expectations. The Department of Commerce reported a seasonally-adjusted growth rate of 0.20% in August against an expected reading of 0.50%. This is also below July’s revised reading of 0.40%.
Not Feeling Confident
We got more bad news last week about the way people are feeling about the economy. The University of Michigan/Thompson Reuters Consumer Sentiment Index for September fell to its lowest reading since April 2013. The September reading was 76.80% as compared to August’s reading of 82.10%.
Several reports to keep an eye on this week:
- Consumer Price Index
- Home Builders Housing Market Index
- Housing Starts and Building Permits
- Weekly Jobless Claims
- Freddie’s Report on Existing Home Sales
But most importantly, we may finally find out…
If/When The Fed Will Start to Taper QE
Not sure if we should be looking forward to the upcoming statement by the Fed’s FOMC on Wednesday after its two-day meeting. As much as we might be nervous about the Fed’s intention concerning its QE program, we know that it wasn’t going to last forever.
Mortgage rates may go up IF the Federal Reserve gives any hints or answers about its plan for tapering the current quantitative easing program. Like I have said several times, mortgage rates would likely rise when the Fed begins tapering its $85 billion monthly purchase of securities.
However, since much of the recent economic news has been crappy, it is possible that the Fed will maintain the status quo regarding QE. Which would mean that mortgage rates should remain steady or maybe even decrease.
Here are some interesting stuff from across the web about real estate, housing and the economy:
Great info: What Are USDA 100 Percent Financing Loans?
Real Estate Trends: What Do Younger Buyers Value?
Lucky Number 13: What’s fixed and what isn’t
Move over granite counter tops: Solar panels gain steam among homebuilders
What’s really happening with the housing: 5 Key Takeaways on Housing
Interesting: Can immigration speed the economic recovery?
This concerns me: Is eminent domain heading to larger cities
Answers Some Questions: CFPB Releases Amended Originator Rules
Call a Plumber? After a Financial Flood, Pipes Are Still Broken