Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – March 12, 2010

YOU DON’T WANT TO MISS THIS EVENT!!!

Scott St. John will be speaking at The Big Room At Sierra Nevada, Friday, March 26, 2010.  Scott is a 3rd-Term Governing Board Member of Freddie Mac.  You’ll have an opportunity to inquire into expected economic future of the United States, Real Estate and its REO future, and what’s happening behind the scenes that is making closing loans to more timely and difficult, these days.   REGISTER AT THE CHICO OR PARADISE BOARD OFFICES.  $10 includes appetizers.  $15.00 AT THE DOOR!

We're All Over The Place, This Morning

Stocks Battling Resistance

Just like Bonds have Trend Lines that are tough to crack, so do stocks.  The S & P 500 had a difficult time breaking through a tough line of resistance at the 1,150 level.  This helped Mortgage-Backed Securities push back up after tail-spinning down 28 Basis Points, early in the morning.  Then, the Consumer Sentiment report came out weaker than expected.  However, as you dissect the particulars of Consumer Sentiment, it shows that One-year inflation expectations rose to 2.8% in March from 2.7% in February.  So, Bonds are now struggling and Stocks are taking more of a bullish attitude.

What The Appointment of Janet Yellen Means

This is, of course, speculation, however, history shows us that Janet Yellen favors lower rates, even at the risk of higher inflation.  President Obama has slated her for the Vice-Chairman position.  The concern, here, is that the world is watching.  With inflation risks looming in the air, investors will tread lightly about investing in fixed mortgage security instruments, and this could cause rates to climb, quickly.

Retail Sales Surprise

That’s right.  Even in light of the horrible, icy storms all over the country, Retail Sales rose 0.3% in February.  Yesterday, we commented on how this would effect rates, particularly when we expected a -0.2% drop.  When stripping out automobile sales we climbed a remarkable 0.8%, while only expecting a modest 0.1% increase.  This is truly news.

Consumer Sentiment

As mentioned above, Consumer Sentiment was a dismal figure, however, when breaking down the particulars, the market noted that inflation expectations are steadily increasing.  Coupled with today’s other inflation concerns, and knowing from reading this article that inflation is the nemesis of interest rates…you see the writing on the wall?

We've Bounced Off of The 200-Day 2 X's Already

Locking Advice

If you haven’t taken advantage of locking, you may as well float, today, to see how the market plays out.  Knowing when to lock is key to financial security when purchasing a home.  I have some of the lowest interest rates on the planet, with over 65 banks to choose from, including Access Real Estate Lending’s own Bank with plenty of lenders in my warehouse line.  Call me for sound real estate financing advice.  Have a great weekend!

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This entry was posted on Friday, March 12th, 2010 at 8:31 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.

1. Brandi Laffins said at March 13th, 2010 at 7:11 am

   I no longer subscribe to the local newspaper and have found reading blogs a great way to keep up. I really appreciate your updates. It keeps me educated and informed on whats going on. Thanks!

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