The DOW roared past 10,000, rising 165.14 points this past Friday as Fed Chairman-Ben Bernanke vowed to act if “unexpected developments” further threaten our economic recovery. Mr. Bernanke’s talk provided few surprises but, reassured Wall Street in a week that had been packed with disappointing economic news and reports. Keep in mind that the Fed will only take action if the economy falters further. One of the fixes is the purchase of securities. Bernanke reassured that their are more tools the FED can use in the future if need be. So, it’s not panic time as some economists and politicians would have us believe. In his weekly column in the S.A. Business Journal- Economist M. Ray Perryman said, “naturally, concerns about the economy linger, and it may be some time before the tempo of recovery picks up enough to create the jobs necessary to sustain economic prosperity. However, the outlook for the future is not nearly as bleak as some sources predict”. On a more positive note, there were fewer than expected filings for jobless benefits for the first time in a month last week.
Texas leads the nation in lots of things and here’s another one. A headline read last week that “Texas leads nation in helping vets get jobs”. Texas has helped more veterans get jobs than any other state, the Texas Veterans Commission said last Wednesday. Plus, Workforce Solutions Alamo has been notified that the Texas Back to Work Program has been extended as well. Employers in the agency’s 12 county area can receive monetary incentives for hiring unemployed workers (not just Vets) under a two year, $15 million state program promoted by Lt. Gov. David Dewhurst and funded by the legislature last session. It seems that Texas is doing all the right things when it comes to our state economy. Maybe that’s just one of the huge reasons folks are wanting to move and live here. Our economy is based on jobs and consumer spending and Texas is definitely leading they way out of this economic downturn.
Mortgage rates fell to the lowest level in decades for the ninth time in 10 weeks, Mortgage buyer Freddie Mac reported last week. The average 30 year fixed rate was 4.36%. That’s the lowest since Freddie Mac began tracking rates in 1971. Refinancing is at its highest level since May 2009 and made up 82.4% of all new loan activity. “With rates this low, many borrowers who refinanced in the past two years may well have an incentive to refinance again,” said Michael Fratantoni, head of research and economics for the Mortgage Bankers Association. Here’s an FYI for you…There are 100% loan programs still out there. One being the USDA Rural Home Loan Program for qualified buyers and areas of the State. Another is FHA’s Good Neighbor Next Door Program. Lastly, is the VA loan program for qualified veterans. There are Lenders willing to loan money too-despite what you may hear on the Constant Negative News channel. In my opinion, there is not and has not been a better time than right now to purchase or refinance your home-no matter if it is a primary residence or an investment property. Sellers are dropping their prices and Mortgage rates are at very low levels. The following is a brief list of items needed to get started for pre-qualification purposes: 1. 08 and 09 W2’s 2. 08 and 09 Tax returns. 3. 1-2 months paystubs. 4. Cash asset account statements. Get these together and find a local Mortgage Loan Officer for a consultative approach to the Mortgage process. It may be easier than you think!
Economic Data due this week: Monday: Personal Income and Spending Report for consumers. Tuesday: Home Price Index. Tuesday: Consumer Confidence Index. Tuesday: FOMC Minutes. Wednesday: ISM Index. Thursday: Pending Home Sales Index for July. Thursday: Factory Orders for July. Thursday: Freddie Mac releases weekly mortgage rates. Friday: Employment data for August.
Quote of the week!
The door to a balanced success opens widest on the
hinges of hope and encouragement.