Info That Hits Us Where We Live – Shutdown

QUOTE OF THE WEEK… “Life is easy to chronicle, but bewildering to practice.” –E.M. Forster, British writer

INFO THAT HITS US WHERE WE LIVE… What’s easy to chronicle is the continuing gain in home prices. One real estate research firm’s index of home prices was up 12.4% year-over-year in August. This index includes distressed sales, which rebounded more, having started at lower levels. But extracting those sales from the measure still puts prices up 11.2% for the year. A second real estate data firm reported national home prices up 10.9% annually in September. An economist from one of the firms predicts, “moderate gains in home prices over the balance of this year.”

What’s bewildering is the federal government shutdown. It hasn’t hurt the housing market yet, as mortgage lenders are still taking applications, locking rates, processing, and closing. But home sales could suffer if the shutdown drags on.Bloomberg.com reports that mortgage applications could be held up because lenders won’t be able to verify Social Security numbers and access IRS tax transcripts, now common underwriting procedures. They also said the shutdown may delay mortgage-related activities at the Federal Housing Administration (FHA) and the Department of Agriculture.

SHUTDOWN SENSITIVE… The federal government shut down last Tuesday after politicians were unable to agree on a budget by midnight Monday. This left investors sensitive to the melodrama coming out of Washington, sending stocks up and down. For the week, the Dow and the S&P 500 ended lower, but the Nasdaq posted its fifth straight weekly gain. Things could go on a bit longer, as the budget is being tied to raising the debt ceiling. If that doesn’t happen, October 17 is the likely day of a default. Meanwhile, what economic data we got was mixed.

The Chicago PMI and the ISM Index showed manufacturing growing a bit stronger than expected. But ISM Services missed its estimate, though still showed expansion. The government shutdown denied us the September Employment Report, but we did get some jobs data. The ADP employment index had a gain of 166,000 private payrolls, which economists say suggests a slight slowing in job growth. Weekly unemployment claims were up by 1,000, but stayed below recession and pre-recession levels and the four-week average fell to 305,000, its lowest level in more than six years.

The week ended with the Dow down 1.2%, to 15073; the S&P 500 down 0.1%, to 1691; but the Nasdaq was up 0.7%, to 3808.

The government shutdown had mixed impact on bonds, some issues booking modest losses, others posting small gains. The FNMA 3.5% bond we watch ended the week up .01, at $101.25. National average mortgage rates dipped for the third straight week, to their lowest level in more than three months, in Freddie Mac’s Primary Mortgage Market Survey for the week ending October 3. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information.

DID YOU KNOW?…  A credit bureau reported originations for home purchase loans were up about 30% in the second quarter of this year, indicating a strengthening housing market.

 

Kristen Zorda
Loan Officer
648 Plank Rd. Suite 203
Clifton Park NY 12065
Office: 518-366-7999
PrimeLending, a PlainsCapital Company

OrsonHeadshotsmallOrson B.Klender,  Associate Broker

Keller Williams Realty Saratoga Springs
38 High Rock Ave, Saratoga Springs, NY 12866

www.RealEstateSaleSaratogaSpringsNY.com

www.OrsonKlender.com

Connect with me…..

FacebookLinkedInWordpressTwitter

Cell: 1 (518) 588-2319 ~ Fax: 1(866) 588-6066

Advertisements

Tags: , , , ,

About Real Estate Agent in Saratoga Springs

As an agent who's an expert in this local area, I bring a wealth of knowledge and expertise about buying and selling real estate here. It's not the same everywhere, so you need someone you can trust for up-to-date information. I am eager to serve you.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: