By Tony Stevenson/SWBC Mortgage
Stocks fell for a fifth time in as many weeks as the DOW ended this past Friday at 12151. Unemployment concerns and concerns over European debt were the main culprits for the decline. Moody’s Investor Service is talking about lowering the U.S.’ triple AAA rating if we don’t increase our debt limit. Keep in mind though that Moody also gave triple AAA ratings for certain mortgage backed securities during the housing bubble only just a few years ago. So, I don’t know how serious their ratings would be taken in the first place. That being said, Congress really needs to raise the debt limit-if anything-to keep global concerns from spiraling further. Most economists agree that we are in a “temporary” economic downturn. The U.S. unemployment rate increased slightly to 9.1% as the private sector gain 54,000 jobs for the month. Which is still better than the 750k job losses we were digesting just two and a half years ago. Other causes for the global economic slowdown are the Japanese tsunamis (down 30% car production in San Ant0onio alone), home price declines and foreclosures, the situation in Libya, and tornados and flooding in N. eastern and southern U.S. states. It may be time U.S. corporations to take the bull by the horns and start spending some of their huge earnings and start re-investing and hiring instead of waiting for the government to intervene again.
Local Economic News
Gov. Perry has ordered our state Congress back in special session to resolve issues not answered during regular session. Education funding being at the top of the agenda. Let’s hope they don’t put our children’s future at the bottom of the list. Most economists agree that any economic turnaround includes a well-educated community.
Oil did drop 10 percent in May which helped Memorial Day weekend travelers. The Texas Hill Country was well traveled as river bound floaters and other tourists spent their weekend traveling the Texas highways stopping for short visits along the way.
Bankruptcy filings in South-Central Texas continue to slide. A 26% drop in filings from just a year ago, May 2010. Even though our state is finding itself in the throngs of penny-pinching and trying to find cuts- even among the elderly, our state has still been the shining star for the nation. And I’m not talking about the Texaco Star. We are being admired for our job growth. The Eagle Ford Shale has come to the rescue as jobs are being filled daily as the oil and gas boom in South Texas continues to share its wealth.
Real Estate and Mortgage Industry News
Home prices fell 4.2% in the first quarter to 2002 levels. This provides for an even better buyer’s market. Mortgage rates fell again too! The 30 year fixed rate index fell to 4.55% from 4.60% just a week ago. Great housing selection, low prices, and low mortgage rates, what else could potential home buyers be waiting for? It shouldn’t be for lack of money as Mortgage lenders are loaning money. You just have to have good credit and the ability to pay-along with a minimal down payments-for now. This can all change at the drop of a hat. When inflation does eventually raise its ugly head, folks will have wished they bought now-than later.
SWBC Mortgage welcomes Tamara Tapman as our Texas Vet/VA Liaison. Tamara brings a wealth of knowledge to our staff regarding Texas Vet and VA type loans. Tamara was previously employed by the Veterans Land Board in San Antonio for 21 years. So, if you know of anyone needing a Texas Vet and/or VA loan, please keep me in mind. I promise to make it an even easier process for our Texas Veterans and Military personnel.
Economic Data Due this week: Wednesday: Fed Beige Book=information released for current economic conditions here in the U.S. from all the Fed’s covered regions. Thursday: International Trade Balance= this is a report regarding imports vs. exports of U.S. products. Thursday: Weekly jobless claims. Thursday: Freddie Mac releases weekly mortgage rates.
Quote of the week!
Bless your past for the best that has happened
and forget the rest.
— —Brian Buffini
Stupid Joke of the week!
A farmer was quoted in the town newspaper as having “2008 pigs”.
He showed up the next morning to declare to the editor, “That’s a
misprint!” He continued, “I never said I have 2008 pigs. I told your reporter that I had 2 sows and 8 pigs.”
Please remember Karen Franz and I with any mortgage referrals you can send us!