nashville mortgage news 10/26
Nashville mortgage news 10/27 - Case Shiller Home Price Index painted the screen with an improvement of 1.2% while the year on year figure was down 11.3%. The number were a bit better than consensus, showing signs of stability creeping back into the housing market. 17 of the 20 market surveyed showed positive price improvement with Charlotte, Las Vegas, and Cleveland the only decliners. Although the numbers are good, uncertainty with the 8K stimulus plan and continued high unemployment will need to be monitored. Consumer Confidence was also released, down nearly 7 points to 47.7, well below the 53.1 economists were expecting. The devil was in the present situation component which fell 2.3 points, its lowest level in 26 years. Consumers and their view on hard to get jobs provided an addition drag. Even with Consumer Confidence being a volatile index, the future of our economic recovery depends on a health consumer, one that has a job and a little “ching” in their pocket. Wished the White House would get that message. Just out, the 44 billion 2 year note auction was “dead solid perfect” ( Randy Quaid 1988). Bullet yield of 1.02%, 44.5% taken by the indirect bidders, and a 3.63% bid to cover gives this one a grade of A. Bonds like it, stocks don’t. Currently, the 10 year note has returned from the abyss, up 18/32’s to yield 3.48%. MBS has widen a touch to treasuries but have gone along for the ride, up 6/32’s. Stocks have given up their gains, currently off a point or two. Since Steve Barton bought lunch for us today, we decided to have a price change for the better. As many of you may recall, I’ll always told you we “may be easy but we’re not cheap”. Technically, the chart has taken out the down trend line, putting at least a temporary bottom in the market. However, we view this as a counter trend rally in a longer term bear market. In other world, until the market can prove itself, this is a correction and should be sold. Use your price improvements and Big Joe’s special incentives to your advantage.