Wednesday, May 16, 2012

Inside This Week’s Market News for the Week of May 15th


Out of a reported 146 metro cities surveyed, the National Association of Realtors announced that home prices have risen in nearly 75 of them in Q1 of 2012. This is an improvement from the 29 cities that saw home price increases in Q4 of last year. Additionally, the National Association of Realtors has also reported that inventories for existing homes are down 41% since the peak in mid-2007.
The National Federation recently reported that the Small Business Optimism Index was up 2 points for the month of April – this is the highest level since February of 2011. The index is currently at 94.5 and while companies have added employees at a slower rate in April than in March, the economy is still showing improvements. Our economy is improving but remains fragile, pointing towards the improvement in Bonds.
Bonds and home loan rates continue to improve as Europe is experiencing continued uncertainty in politics and the financial sector.

Forecast

Next week will see many economic reports that will touch on many aspects of the economy including consumer spending and inflation.
The Retail Sales will be released this Tuesday and will focus on the current state of consumer spending. The Consumer Price Index, also being released this Tuesday, will report the inflation at the consumer level.
Housing Starts as well as Building Permits data will be coming this Wednesday. The Weekly Initial Jobless Claims will be released this Thursday – last week’s numbers were the lowest in a month.
The important point to take away from the recent market news reports is that now continues to be an excellent time to purchase or refinance a home as home loan rates continue to remain near historic lows. If we can help answer any questions for you please contact us as we would be glad to help you.
Housing Starts as well as Building Permits data will be coming this Wednesday. The Weekly Initial Jobless Claims will be released this Thursday – last week’s numbers were the lowest in a month.

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