Besides mortgage activity, the big news was the release of the latest Case Shiller numbers. This week saw the release several economic reports. All showed moderate improvement but the improvement needed is so great that the news still seemed bleak! Unemployment is barely below 10%; this is a measure of those filing jobless claims. A little discussed number is the one that captures true unemployment. This takes into account those who either never had eligibility or have lost eligibility and are underemployed. Underemployment means a person who desires full-time employment but can only find part-time employment. True unemployment is just over 17%. This is a little discussed number because it is high and scary! Once this number begins to decline, the housing market can sustain true stabilization and ultimately growth.
The latest Case Shiller report includes data through March 31 measuring activity in both a 10 and 20 city index. The 10 city home price index fell by 0.4% and the 20 city saw 0.7% decline; the Pikes Peak MLS saw very similar trends in January. The Pikes Peak region data indicates an increase in February and March; PPMLS data closely mirrors national trends so we expect the next Case Shiller report to show slight improvement. The two cities seeing greatest improvement are both in California which has sustained a long term freefall in pricing. The best news is that the rate of decline in a year over year analysis continues marked slowing. Denver demonstrated a year over year increase of 2.6%. Month to month saw a decline but this is easily explained by slowed seasonality in the market and weather. We like to focus on the year over numbers since they provide a broader picture. The trouble areas are Charlotte, N.C., Las Vegas, Seattle and Tampa; all are experiencing the lowest prices and greatest declines since the financial crisis began. Notable improvements include San Francisco(up 15.2%) and Minneapolis (up 12.9%) over their trough. Good news for both cities which were in freefall for a long time.
Interested in buying bills from Fannie Mae or Freddie Mac? The 2010 auction sale calendar has been announced. The 3 and 6 month bills will be sold weekly and optional 1 and 12 month bills will be sold as well. Understanding these investments is imperative to smart investing. The Wall Street Journal recently published an article that may be a good start for would be investors. The Federal Reserve has ended its support of this area opening additional opportunities for investors.
The weekly survey of Mortgage Banker's (week ending April 1) reveals that the average rate for a thirty year mortgage interest rose to 5.08% with an average of 0.7 point down. This is one of the largest increases seen in quite some time. This increase is in response to an increase in bond yields. The fifteen year rate is 4.39 with an average of 0.6 point down. The rates specific to the Southwest region which includes Colorado are slightly lower. The Mortgage Banker's Association noted in its weekly report that Mortgage Insurance Companies of America indicates that homeowners moving out of default outnumbered newly delinquents for the month of February, this is the first a reversal of the trend since March 2006.
Understand the home inspection? Home inspectors observe and note major issues with a home on behalf of a prospective home buyer. All home inspectors are not the same. For example, some inspectors will physically inspect a roof while others will "eyeball" it and make an assumption based upon that. Important questions include the inquiry of method of roof inspection; binoculars, physical inspection or other method. Good home inspectors gain their knowledge through experience as many states don't offer or require a formal training program. A recently published book 1,001 Things They Won't Tell You: An Insider's Guide to Spending, Saving, and Living Wiselyby Jonathan Dahl and the editors of SmartMoney offers interesting insights.
Next week we will taking a look at the first quarter stats as they relate to the Pikes Peak region…check back!
Written on Sunday, 04 April 2010 09:16 by Joe Boylan
