Last Week in the News
--------------------------------------------------------------------------------
Construction of new homes in May fell to a seasonally adjusted annual rate of 1.47 million units, a 2.1% drop from April and a 24.2% decline from a year ago, the Commerce Department reported June 19. The decrease matched economists' expectations, and reflected weakness in the South and West, which offset construction gains made in the Northeast and Midwest.
Housing permits, considered a good barometer of future activity, rose 3% in May, but the increase followed a 7.1% plunge in April. Last month's stronger activity originated from a rebound in permits for apartment construction. Meanwhile, mortgage applications for single-family homes fell 1.8% and have been down four of the past five months.
The National Association of Home Builders reported on June 19 that its survey of builder sentiment sank two points to 28 in June, the lowest since it hit 27 in February of 1991. Readings below 50 mean more builders view market conditions as poor rather than favorable. All three major components of the index -- sales, sales expectations and buyer traffic -- posted declines.
Rates on 30-year mortgages, after rising for five straight weeks, edged down slightly for the week. Rates have been pressured by rising yields on the benchmark 10-year Treasury note.
For the week ended June 15, unemployment claims rose by 10,000, to 324,000, the highest level since mid-April. While the increase was unexpected, analysts said the labor market remained strong.
This week look for updates on existing home sales on June 25 and new home sales on June 26.
Thank you,
Jason Lash
Branch Manager
Family Home Lending
866-366-5724
http://www.virtualloanpro.com/http://www.homecredible.com/http://www.honestmortgageanswers.com/
Posted by Jason Lash at 10:54 AM
Economic Update June 18th, 2007
Last Week in the News
--------------------------------------------------------------------------------
Fueled by a surge in gasoline prices, May's Consumer Price Index increased 0.7%, its fastest pace in 20 months, the Labor Department reported June 15. However, core consumer prices, which exclude volatile food and energy costs, rose only 0.1%, slightly lower than the 0.2% analysts had predicted.
The Producer Price Index, which measures inflation at the wholesale level, rose 0.9% in May, worse than the 0.6% increase economists had expected. Yet, wholesale core inflation increased a moderate 0.2%, slightly better than the 0.3% hike analysts had anticipated.
Meanwhile, compared to April, retail sales in May surged 1.4%, the sharpest rise in 16 months and double the increase analysts had expected, the Commerce Department said June 13. The increase should ease fears that consumer spending, which accounts for two-thirds of the economy, could falter in coming months under the impact of rising gasoline prices, a challenging housing market and recent increases in interest rates.
Rates on 30-year mortgages rose for a fifth straight week, hitting the highest level in 11 months, Freddie Mac said June 14. The rise parallels rising yields on Treasury securities.
Foreclosures for May were up 19% from April and up nearly 90% from May 2006, RealtyTrac reported June 14. In Nevada, there was one foreclosure filing for every 166 households last month, nearly four times the national average and the highest rate in the country.
This week look for updates on building starts and housing permits on June 19.
Thank you,
Jason Lash
Branch Manager
Family Home Lending
866-366-5724
http://www.virtualloanpro.com/http://www.homecredible.com/http://www.honestmortgageanswers.com/
Posted by Jason Lash at 4:16 PM
We are giving back to the community.
The market is flooded with homes for sale and people are desperate to sell them. As a result there are literally thousands of homes for sale in all price ranges for pennies on the dollar.
These homes are perfect for first time home buyers, people looking to “move up” to their next house, and investment properties.
Are you currently stuck in a lease? Don’t let that affect your decision. We have a lease buy out assistance program.
We have decided to take 10% of their revenue and donate it to a charity on every transaction. We support the fallowing charities:
• American Cancer Society
• Grand Rapids Humane Society
• Habitat for Humanity
• I.C.C.F. (Inner City Christian Federation)
• Met Trotter
We will donate to your choice of the charities listed above or to any charity or religious origination of your choosing.
For a free list of homes or to apply for financing please go to www.VirtualLoanPro.Com or call me at 866-366-5724.
Thank you,
Jason Lash
Branch Manager
Family Home Lending
866-366-5724
http://www.virtualloanpro.com/http://www.homecredible.com/http://www.honestmortgageanswers.com/
Posted by Jason Lash at 10:31 AM
Economic Update June 11th, 2007
Last Week in the News
--------------------------------------------------------------------------------
The U.S. trade deficit -- the gap between what America sells abroad and what it imports -- totaled $58.5 billion in April, a 6.2% improvement over the March deficit, the Commerce Department reported June 8. Record-high exports of $129.5 billion, reflecting strong sales of soybeans and other farm products, commercial aircraft and industrial machinery, helped shrink the gap.
The nation's service economy showed surprising strength as the Institute for Supply Management (ISM) said June 5 that its index of business activity in the non-manufacturing sector registered 59.7 in May, higher than April's reading of 56 and Wall Street's expectation of 56 for May. A reading above 50 indicates expansion.
A better-than-expected service economy underscored comments by Federal Reserve Chairman Ben Bernanke to a June 5 international money conference that the U.S. economy will rebound from an anemic performance at the start of the year to a "moderate pace" in coming quarters. On the mortgage front, he added, "We must walk a fine line: We have an obligation to prevent fraud and abusive lending; at the same time, we must tread carefully so as not to suppress responsible lending or eliminate refunding opportunities for subprime borrowers."
Meanwhile, mortgage rates rose a sixth straight week to their highest levels in 10 months, Freddie Mac reported June 7. Analysts attributed the rise to an improving service economy and low unemployment, resulting in a growing competition and higher-wage (inflationary) environment for workers.
This week look for updates on the Producer Price Index on June 14 and the Consumer Price Index on June 15.
Thank you,
Jason Lash
Branch Manager
Family Home Lending
866-366-5724
http://www.virtualloanpro.com/http://www.homecredible.com/http://www.honestmortgageanswers.com/
Posted by Jason Lash at 10:25 AM
Economic Update June 4rth, 2007
Last Week in the News
--------------------------------------------------------------------------------
The first-quarter growth rate of the nation's gross domestic product was downgraded from a preliminary estimate of 1.3% to just 0.6%, the worst showing in more than four years, the Commerce Department said May 31. The foreign trade deficit was largely blamed for stunting growth.
Employers, however, did their part for the economy, adding 157,000 jobs to their payrolls in May, the Labor Department reported June 1. Economists had forecast growth of 135,000 jobs.
Personal income slipped 0.1% in April from March, the first drop in two years, the Commerce Department said June 1. The decline follows the pay-out of unusually large Wall Street bonuses and corporate stock options in the first quarter of 2007. Analysts expected personal income to rise 0.3%.
Although personal income dipped, consumer spending -- a key ingredient to a healthy economy -- rose a strong 0.5% in April, ahead of analysts' forecast of 0.4%, the Commerce Department reported June 1.
Manufacturing output also rose, as the Institute for Supply Management said its manufacturing index in May climbed to 55, above April's 54.7 reading and higher than the market expectation of 54. A reading above 50 indicates growth.
Consumer confidence increased as well, with The Conference Board, a private research group, reporting that its index of consumer confidence for May moved to 108 from 106.3 in April. Economists had expected a reading of 105.
For the week, mortgage rates on fixed-rate products rose again, Freddie Mac said May 31.
This week look for updates on factory orders on June 4 and the trade balance on June 8.
Thank you,
Jason Lash
Branch Manager
Family Home Lending
866-366-5724
http://www.virtualloanpro.com/http://www.homecredible.com/http://www.honestmortgageanswers.com/
Posted by Jason Lash at 7:50 PM
