1. I s su e 12 , Vo lu me 9 / Mar c h 4 , 20 1 1
Optimism on the Horizon The Week Ahead -> The “Keys”
Tim McLaughlin - Light week of economic data as quarter end approaches
Last week, Fannie Mae released their National Housing
Date Economic Release Prediction Last
Survey for 4Q10. This comprehensive report and survey
showed that the majority of Americans surveyed were upbeat
and optimistic about the housing sector as compared to where 3/7 Consumer Credit $4.70B $6.10B
we were 12 to 24 months ago.
3/8 NFIB Small Business Opt - 94.1
The survey showed that Americans are more confident 3/8 IBD/TIPP Eco Optimism - 50.9
about the stability of home prices than they were at the
beginning of 2010, even though there are some lingering 3/9 MBA Mortgage Applications - -6.5%
concerns about the acceleration of the economy. If fact, over
three-quarters of the respondents (78 percent) believe 3/9 Wholesale Inventories 1.0% 1.0%
housing prices will hold steady or increase over the next
twelve months. 3/10 Initial Jobless Claims - 368K
3/10 Continuing Claims - 3774K
Other takeaways:
3/10 Trade Balance -$41.0B -$40.6B
Younger Americans are generally more positive about
owning a home than the general population. 59 percent of 3/10 BB Consumer Comfort - -39.3
Generation Y (ages 18-34) believes buying a home has a
lot of potential as an investment. 3/10 Monthly Budget Statement -$235.0B -
As stated above, 26% of the general population thinks 3/11 Advance Retail Sales 0.6% 0.3%
housing prices will increase over the next 12 months, with
an additional 52% thinking that housing prices will remain 3/11 less Autos 0.6% 0.3%
about the same.
3/11 less Autos and Gas 0.4% 0.2%
On average, members of the survey anticipate home 3/11 U of Michigan Confidence 76.0 77.5
prices to increase 0.4% over the next 12 months, while
the same subset expects rental prices to increase 2.8% 3/11 JOLTs Job Openings - 3063
over the same time period. The expectation that rental
increases will far outpace home price increases was 3/11 Business Inventories 0.7% 0.8%
prevalent with surveyors over the next five years, in fact.
One in four Americans said they would probably buy a Secondary Marketing Takeaways: Seeing rates
home in the next three years (both current homeowners hover around the high 4% range as conflicting forces push
and non-homeowners), and one in three Hispanics and rates slowly down then slowly back up. On one hand, you
African Americans were of this thought process. have oil prices sky rocking and global economic concerns
in Libya, on the other hand, you have initial jobless claims
One interesting (and probably obvious) fact: poor credit is coming in with the lowest reported number in almost three
the number one stumbling block keeping potential years, and Greenspan stating at Congressional hearings
borrowers from owning a home. that a third round of financial stimulus is “not out of the
question”. The first quarter has been all about range
Interested in getting ahead of the consensus and acquiring trading, with rates bouncing back and forth better 4.75%
that home today? Interested in researching what your credit and 5.25%. Short term expectations are an anticipated
looks like or what fixes to make to your credit structure for continuum of this trend, as both positive and negative
approval? Interested in investment properties, with expected news blankets the headlines.
increases in rental prices? We can help…ask us how!
Mortgage Access Corp. d/b/a Weichert Financial Services, Executive Offices, 225 Littleton Road, Morris Plains, NJ 07950. 1-800-829-CASH. NMLS Company ID:
2731. Licensed by the NJ Dept of Banking and Insurance. Licensed Mortgage Banker with the State Dept of Banking in NY and CT. Licensed by the Pennsylvania
Department of Banking, Mortgage Lender 21042. Licensed Lender in AK, AR, DE, MD, D.C., GA, ME, MI, MN, WI, IA, IL, IN, LA, VT, FL, WV, RI, KY, NC, ID, MS,
NE, WY, OK,TN, WA. Licensed by the Virginia State Corporation Commission, License #ML105. Licensed Mortgage Lender in the Commonwealth of
Massachusetts. License #ML1713, Certificate #43155. Certificate of Authority to transact business in CO, SC. Registered Mortgage Lender in TX. Licensed with
the Financial Institutions Division in New Mexico, License # 01297. Licensed by the Department of Corporations under the California Residential Mortgage Lending
Act. Licensed Mortgage Broker and Lender Ohio. Licensed Loan Broker and Lender Rhode Island. Kansas Licensed Mortgage Company, License #MC.0001229.
Licensed by the New Hampshire Banking Department, License # 8714-MB. Licensed Oregon Mortgage Lender License #ML2528. Weichert Financial Services
arranges loans with third-party providers.
