Economic News…As we rang in the New Year all eyes were on the Congress & President to avert the so-called “Fiscal Cliff”. A deal was struck but look out for more volatility as the United States has reached the debt ceiling and what looks to be a contentious battle lies ahead in the next few months. Good news for those who are having to go the short sale route. Mortgage Debt Tax Relief was extended for another year. California’s Homeowner Bill of Rights, which was signed last year by Governor Jerry Brown, has taken effect. One part which will be a relief to many homeowners is the elimination of “Dual Tracking”. This process allowed banks to proceed with the foreclosure while an attempt at a loan modification was in process. This will certainly take some of the stress away from distressed owners as they try to restructure their loan and may give them a little more time to prepare for a short sale if the modification is declined.
Mortgage Markets…Minutes from the Federal Open Market Committee spooked the debt markets yesterday by revealing what may be some dissention going forward on monetary policy. This contributed to a sharp slide in MBS and Treasury prices. The 10 Year Note is currently trading at 1.932% versus last week’s closing yield of 1.716%.
Next Week’s Market Moving Reports… Thursday: Jobless Claims Friday: International Trade
While I do not originate loans I make it a habit to keep abreast of mortgage & market conditions. If you are thinking of purchasing a home the first step is to meet with a mortgage professional. I will gladly provide several top-notch Bay Area advisers for your review if you are in need of a referral.