Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – September 29, 2009

Housing Prices Reach Their Lows?

The Case-Shiller Home Price Index is a report that shows the nation’s twenty largest cities’, year over year, and month over month, pricing comparisons.  The year over year price fell 13.3%, however, they expected a 14.2%.  The good news was that eighteen of these cities also showed a month over month gain in values.  The only two cities that showed decline were Las Vegas and Seattle. 

Can Rates Get Better…

It may prove difficult.  Until we move into October and earnings reports, from corporations, start exposing their bottom lines.  The reason why is that we’ve hit lows, again, for the year.  Not the two hour lows that we saw in January and March, but whole day lows (two times, this year, you could obtain 4.25% for zero points on a 30 year fixed rate…for about two hours).  We’ve broken through the 200-Day Moving Average, and now, we’re about 50 basis points above that trend line.  So, should any economic news show a little sign of strengthening, 50 points is a lot of room for prices to fall (causing rates to go up).

Consumer Confidence…No So Confident

Consumer Confidence for September, was reported at 53.1.  The market expected a more solid reading of 57.0.  I’ve been somewhat surprised, frankly, at these numbers the past months, anyway.  So, I feel like this is where we should be, regarding confidence.  I, personally, don’t think things are as rosy as the market seems to feel.  I hope we’re coming out of this recession, and that home prices are on the mend, but think that when the Mortgage-Backed Security Purchase Program ends, and interest rates will be effected negatively, it will have a bad effect on the recovery process.

By The By…

Today marks the anniversary of the worst day that the Dow Jones Industrial Average history.  That’s right, September 29, 2008, saw the Dow lose 777.68 points after the House did not approve the $700 Billion Bailout Plan, its first attempt through.  Stocks lost $1.2 Trillion in value. 

Locking

If you don’t lock today, you better be ready tomorrow.  Just don’t know if we can push through the highs of the year.

Related Must Reads

Read A Brief History of What 2008 Meant To The World
Boy, We Thought It Was A Good Time To Buy, Then…
 

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This entry was posted on Tuesday, September 29th, 2009 at 8:35 am and is filed under Chico Home Loans, Home Buying, Interest Rates, Weekly Market Report. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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