Economic News…was light in this holiday shortened trading week. Weekly Jobless Claims and Industrial Production were, for the most part, inline with estimates. Reporting next week should provide a little more direction as to the near-term momentum of interest rates. In the past year and a half we have experienced a “white hot” real estate market in the Bay Area. While there are some signs of cooling with higher mortgage rates, market conditions continue to remain in favor of the seller but is there a change coming? The California Association of Realtors® released the Housing Affordability Index and affordability has fallen in each of the last six quarters. 32% of homebuyers can currently afford a median priced home in California. This is significantly lower than the 49% mark which was seen in the Summer and Fall of 2012.
Mortgage Markets…ended the week on a positive note. The 10 Year Note closed trading with a yield of 2.707% which is a slight improvement over last week’s closing yield of 2.751%.
Next Week’s Market Moving Reports…Monday: Housing Market Index Wednesday: Consumer Price Index, Retail Sales, Existing Home Sales, Minutes from the Federal Open Market Committee Thursday: Jobless Claims, Producer Price Index
While I do not originate mortgages, I make it a habit to keep abreast of market & home loan 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.
© J. Douglas Anderson 2010-2013 All Rights Reserved
California Bureau of Real Estate Broker Licenses 01165309 and 01190879
Any statistics were compiled from Public Records and other industry sources and are deemed reliable but not guaranteed. Any square footage quoted is approximate and requires buyer verification. It is illegal to discriminate against any person because of race, color, religion, sex, handicap, family status or national origin.