Wall Street logged five positive days last week before dropping over 100 points today on the back of Europe debt concerns (see Greece issues). We have written that sentence enough over the past few months to say with certainty – the stock market will not settle down until Europe can find some lasting resolution to its debt problems.
We have plenty of housing news in recent days, and a few important numbers that will be coming out this week. Mortgage default warnings jumped 33 percent in August, which is the largest monthly gain in 4 years. According to City analyst Josh Levin, there are 3.7 million homes in foreclosure above what is normal for a healthy market. Nearly one in four homes houses in the US are in some stage of foreclosure. The one positive of the increased foreclosures is that it will begin the process of clearing the market of extra supply.
Average home prices in California have fallen 4.2 percent from August 2010, down to $249,000 from $260,000. California is also struggling with unemployment. In August, the jobless rate increased to 12.1 percent, which is second highest in the nation behind Nevada.
This week we will see three important housing reports. We will see the National Association of Home Builders (NAHB) September index that details builder’s confidence of sales conditions. On Tuesday, we will see August housing starts and on Wednesday we will see August existing home sales. We say “important reports” but in all reality, the numbers are expected to be fairly low and simply a further indicator of market struggles. Despite record low interest rates, demand in the housing market just isn’t there.
Rates remain low and refinance activity is up accordingly. Here at Central Coast Lending we offer the 30-Year Fixed at 3.875% (4.028% APR) and the 15-Year Fixed at 3.250% (3.420% APR). Last year, we saw a drop in interest rates at this time before the winter season brought them back up. Keep checking in with our Facebook for daily rate updates and Blog for in depth information about important economic developments.