The Next Kick-Start for the Economy

By
Real Estate Agent with Sereno Group

Oct. 1, 2010 -- After near stasis for the past six weeks, mortgage rates again managed a bit of a decline amid mixed economic messages. Increasing speculation that the Fed will initiate substantial purchases of Treasury bonds (so-called "quantitative easing") to kick-start the economy from its bare expansion helped to drive interest rates a bit lower.

HSH's overall mortgage monitor -- our weekly Fixed-Rate Mortgage Indicator (FRMI) -- saw the average rate for 30-year fixed-rate mortgages shed five basis points to begin October at 4.70%. Important to first time homebuyers and low-equity refinancers alike, 30-year FHA-backed mortgages sported an average of 4.40% for the week. The overall average for Hybrid 5/1 ARMs declined by six basis points (.06%), finishing our national survey at 3.61%. HSH.com's FRMIs include rates for conforming, jumbo, and most recently the GSE's "high-limit" conforming products and so covers much of the mortgage-borrowing public.

We mention above that the economic news seems more mixed to us. It wouldn't be hard to improve upon second quarter GDP, which came in at a final reckoning of 1.7%, but there does seem to be a mild overall uptick (or at least greater stability) in the news for September, the final month of the third quarter.

There can be no doubt that 3Q10 will be a weak one overall, but to us, much of the weakness seemed to be concentrated in July and August. 

The big employment report doesn't come until next week, and it's the big gorilla in a fairly empty room.

Stock and bond markets enjoyed unexpectedly favorable conditions in September, which is not noted to be a historically great period for equities. October's been known to be a difficult period, too, but if September's any indicator, perhaps the markets are simply becoming accustomed to being in active crisis, and can find reasons to celebrate when we're not. Here's hoping that the rally's got more substance behind it than that, but there's nothing wrong with a little optimism showing somewhere.

P.S. If you missed it over the last few weeks, you should have a look at our plan to help responsible homeowners who are underwater. Unlike the "FHA Short Refi" idea, the concept doesn't penalize homeowners or investors... and there might even be no cost to taxpayers, either. Curious? 

Read HSH.com's Value Gap Refinance idea: http://www.hsh.com/ValueGapRefi.html 

Interested in buying or selling a home in Santa Cruz; I can help. For Market Reports City by City please click here.

Want property listings in Santa Cruz emailed to you just click here.

To search for Santa Cruz, Monterey Bay properties go to, www.SusanGrant.biz, www.SantaCruzAvoidForeclosure.com or contact Susan Grant directly at (831) 247-9140.

Susan Grant, David Lyng Real Estate, Santa Cruz to Carmel

DRE#01331769

Posted by

Susan Bolster-Grant

REALTOR, Lic. 01331769

 

D: (831) 298-0044

C: (831) 247-9140

www.BolsterGrant.com

 

Sereno Group – Santa Cruz

2407 Porter Street

Soquel, CA 95073

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
California Santa Cruz County Santa Cruz Westside
Tags:
santa cruz ca
santa cruz sales stats
susan grant
david lyng real estate

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the umbrella to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the folder to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
1,176,344
John Pusa
Sellstate Pacific Realty - Glendale, CA
Your All Time Realtor With Exceptional Service

Susan - Thank you for sharing an educational blog about goverment will kick start the economy.

Oct 17, 2010 12:19 AM #1
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the leaf to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
21,899

Susan Bolster-Grant

Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clip to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information