Another Sign of Housing Strength – Purchase Applications Rise:
Applications for U.S. home mortgages edged up last week, boosted by stronger demand for purchases for the second week in a row.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 0.1 percent in the week ended April 27.
The MBA’s seasonally adjusted index of loan requests for home purchases gained 2.9 percent, but the gauge of refinancing applications slipped 0.7 percent.
The refinance share of total mortgage activity eased to 72.6 percent of applications from 73.4 percent the previous week.
The survey covers over 75 percent of U.S. retail residential mortgage applications, according to the MBA.
This two week trend of stronger applications for a mortgage to purchase a home mirrors the much better than expected Pending Home Sales report last week.
What Happened to Rates Last Week?
Mortgage backed securities (MBS) gained +50 basis points from last Friday to the prior Friday which caused mortgage rates to move lower.
The highest rates of the week were on Tuesday and the lowest rates of the week were on Friday.
MBS traded in a very narrow range all week as we had a mixed bag of economic news.
But MBS moved sharply higher (causing lower mortgage rates which move in an inverse direction) on the much weaker than expected Unemployment data. Yes, the Unemployment Rate dropped from 8.2% to 8.1% – on the surface that would appear to positive for the job picture. But the Unemployment Rate is an outdated and highly manipulated calculation based upon very old technology (phone surveys), the vast majority of economists and traders put little stock in that number.
Instead, they focus on the Non-Farm Payroll data. This is calculated using peoples paychecks and is considered to be much more accurate. And with this latest Non-Farm Payroll data, the market received a big disappointment. The market was expecting a gain of approximately 165K jobs. But instead, we only saw a gain of 119K. This miss to the down side caused bonds to rally (they generally react well to poor economic news).
What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages.
I will be watching these reports closely for you and let you know if there are any big surprises:
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.
Quote of the week:
“Alternatives to foreclosure, such as loan modifications and short sales, are being used to clear out inventory…and at the same time, there were fewer homes awaiting foreclosure.” – Anand Nallathambi, chief executive officer of CoreLogic
Vince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
vince@coloradomortgageguy.com
19519 E Parker Square Dr
Parker, CO 80134
www.coloradomortgageguy.com
If you enjoyed this article, please consider sharing it!
Home Sales Increase to Near Two Year Highs:
Contracts to purchase previously owned homes increased solidly to a near two-year high in March, suggesting the spring selling season got off to a firmer start and offering hopes of a pickup in housing.
The National Association of Realtors said on Thursday its Pending Home Sales Index, based on contracts signed in March, jumped 4.1 percent to 101.4, the highest level since April 2010.
March’s strong rise in signed contracts pointed to a pick up in home resales after they stumbled in the past two months.
“First quarter sales closings were the highest first quarter sales in five years. The latest contract signing activity suggests the second quarter will be equally good,” said Lawrence Yun, chief NAR economist.
Signed contracts were up 12.8 percent in the 12 months to March.
Contracts rose strongly in the South and West, but fell in the Northeast and Midwest.
What Happened to Rates Last Week?
Mortgage backed securities (MBS) lost just -1 basis point from last Friday to the prior Friday which caused mortgage rates to move sideways.
The highest rates of the week were on Wednesday and the lowest rates of the week were on Monday.
MBS traded in a very narrow range all week as we had a mixed bag of economic news.
Durable Goods Orders, New Home Sales, Initial Jobless Claims and the 1st quarter GDP were all worse than expected and provided some support for bonds. But Consumer Sentiment, Pending Home Sales and Fed action were negative for bonds and kept a cap on any material gains.
The Federal Reserve Open Market Committee (FOMC, aka “The Fed”) left their key interest rate alone and basically made a carbon copy of their last policy statement. They basically told the market that there was no need for any additional stimulative measures at this time, nor do their projections show that further easing would be needed in the future. However, if the economy did turn from its current positive direction they are prepared to step in.
What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages.
I will be watching these reports closely for you and let you know if there are any big surprises:
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.
Quote of the week:
First quarter sales closings were the highest first quarter sales in five years. The latest contract signing activity suggests the second quarter will be equally good.
Vince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
vince@coloradomortgageguy.com
19519 E Parker Square Dr
Parker, CO 80134
www.coloradomortgageguy.com
If you enjoyed this article, please consider sharing it!
Housing Supply Decreases, Good for Housing:
In the latest release of the National Association of Realtors’ Existing Home Sales report, there were some very interesting facts. Even though they reported a month-over-month decrease of 2.6% in existing home sales, they revised February’s data upward. The NAR said even with March’s decline, the pace of sales in the first three months of the year marked the strongest first quarter since 2007.
But the real gem is the inventory data. The nation’s glut of unsold homes is easing, as inventories fell to 2.37 million. Realtors in some markets have even reported shortages of housing stock. A decrease in the amount of homes on the market is always good for housing as it stabilizes and even drives prices upward. Nationwide, the median price for a home resale rose to $163,800 in March, up 2.5 percent from a year earlier.
An improving labor market has realtors upbeat about sales prospects for the rest of the year.
Distressed home sales accounted for only 29 percent of resales, down from 34 percent in February, which is also a very positive trend.
What Happened to Rates Last Week?
Mortgage backed securities (MBS) gained +15 basis points from last Friday to the prior Friday which caused mortgage rates to move sideways.
The highest rates of the week were on Tuesday and the lowest rates of the week were on Friday.
MBS traded in a very narrow range all week as we had a light week in terms of the economic data that was released.
Retail Sales were much better than expected but Initial Jobless Claims and Existing Home Sales were worse than expected, there were no major Treasury auctions to guide the market last week.
What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages.
I will be watching these reports closely for you and let you know if there are any big surprises:
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.
Quote of the week:
“An improving labor market has realtors upbeat about sales prospects for the rest of the year.” – NAR economist Lawrence Yun
Vince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
vince@coloradomortgageguy.com
19519 E Parker Square Dr
Parker, CO 80134
www.coloradomortgageguy.com
If you enjoyed this article, please consider sharing it!
Housing Poised for Spring Recovery:
Five years after the U.S. housing bust sent sales and prices plunging, the spring home-buying season is pointing to a long-awaited recovery.
Reduced prices, record-low mortgage rates, higher rents and an improving job market appear to be emboldening many would-be buyers.
Open houses are drawing crowds. A wave of foreclosures is leading investors to grab bargain-priced homes.
And many people seem to have concluded that prices won’t drop much further. In some areas, prices have begun to tick up.
“The biggest challenge that we’ve had over the past four years is fear — fear that the economy is collapsing, that property values are collapsing, that the world is coming to an end,” says Mark Prather, a broker at ERA Buy America Real Estate in La Palma, Calif. “The fear factor is all but gone.”
The spring buying season got an early lift-off from an uncommonly warm January and February — a winter that was the best for sales of previously occupied homes in five years. Permits to build houses and apartments rose in February to their highest level since 2008.
“People feel much more confident,” said Steve Brown, co-owner of real estate company Irongate Inc. of Dayton, Ohio, who says sales jumped more than 16 percent for the first two months of 2012 over the same period last year. “There’s no question there’s a good feeling in the marketplace.”
Some analysts detected a slight uptick in prices for February and March. CoreLogic, a real estate data firm, says prices for homes not at risk of foreclosure — about two thirds of the market — rose 0.7 percent in February. It was the first increase in four years. Price gains occurred both in some hard-hit areas, such as Phoenix, and some still-thriving areas like New York and Washington.
Also fueling interest are signs that home values are finally stabilizing. One factor that had slowed purchases after the housing boom ended in late 2006 was fear that a home would lose value soon after its purchase.
What Happened to Rates Last Week?
Mortgage backed securities (MBS) gained just +3 basis points from last Friday to the prior Friday which caused mortgage rates to move sideways.
The highest rates of the week were on Wednesday and the lowest rates of the week were on Tuesday. The difference between our best and worst pricing for the week was a whopping 109 basis points which shows a lot of volatility.
Mortgage rates dipped Tuesday afternoon in reaction to global concern over Spain and Italy’s debt woes. Mortgage rates then reversed course and increased both Wednesday and Thursday in reaction to the release of the Fed’s Beige Book (named for the color of its cover). The Beige Book contains the economic data that the Fed will use to base their next policy move. In this report, the economic conditions in most districts were improving which led investors to believe that there would be a reduced chance for the Fed to have another round of quantitative easing.
Mortgage rates then reversed course again, and improved on Friday in reaction to a weak stock market and milder than expected University of Michigan Consumer Sentiment reading.
What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages.
I will be watching these reports closely for you and let you know if there are any big surprises:
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.
Quote of the week:
The biggest challenge that we’ve had over the past four years is fear — fear that the economy is collapsing, that property values are collapsing, that the world is coming to an end – the Fear Factor is all but gone now. – Mark Prather, a broker at ERA Buy America Real Estate in La Palma, Calif.
Vince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
vince@coloradomortgageguy.com
19519 E Parker Square Dr
Parker, CO 80134
www.coloradomortgageguy.com
If you enjoyed this article, please consider sharing it!
Factory Orders Continue Rebound
Businesses ordered more machinery and equipment from U.S. factories in February, a signal that many are investing in their companies despite the expiration of a tax credit.
This is positive news for the housing market as increased demand for manufacturing signals stronger consumer sentiment.
Orders to U.S. factories increased 1.3 percent in February, the Commerce Department said. That offset a similar decline in January.
U.S. factories stepped up hiring and production in March, based on a report Monday from the Institute for Supply Management.
The trade group of purchasing managers said its index of manufacturing activity rose to 53.4 in March, up from a February reading of 52.4. Readings above 50 indicate manufacturing is expanding.
Manufacturing has been a key source of economic growth since the recession ended in June 2009.
What Happened to Rates Last Week?
Mortgage backed securities (MBS) gained +70 basis points from last Friday to the prior Friday which helped mortgage rates to decrease (Mortgage rates have an inverse relationship to mortgage backed security prices).
The highest rates of the week were on Tuesday and the lowest rates of the week were on Friday.
Mortgage rates shot up Tuesday afternoon after the release of the minuets from the last Fed meeting.
As traders deciphered the minutes, it became clear to them that a third round of quantitative easing would not be in the cards. This caused MBS to sell off and forced mortgage rates higher.
But everything changed on Friday.
The MBS market reacted sharply to the disappointing employment data.
The headline Unemployment Rate dropped from 8.3% to 8.2% but traders largely ignore this data as it is the results of a verbal phone survey.
Traders focus instead on the Non-Farm Payroll data which did show that the economy added 120,000 jobs. While job growth is good, this was a big decrease from the prior month where the economy added 240,000 jobs. This disappointing employment news caused traders to speculate that further Fed action may be needed (a complete reversal in thought from Tuesday afternoon) and made MBS attractive again. This new demand for MBS helped to push mortgage rates lower.
What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages.
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets.  Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.
Quote of the week:
“The biggest source of unfinished business in the financial reform effort is in the housing finance area…Fannie Mae and Freddie Mac are “not a source of systemic risk” now” – Treasury Secretary Geithner
Vince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
vince@coloradomortgageguy.com
19519 E Parker Square Dr
Parker, CO 80134
www.coloradomortgageguy.com
If you enjoyed this article, please consider sharing it!
Bull Market in Bonds Nearing an End?
After the false starts of 2010 and 2011, the U.S. economy may finally be on the path toward a strong recovery, Lawrence Summers, former Treasury secretary and currently Charles W. Eliot University Professor at Harvard, wrote in an opinion piece in the Financial Times on Monday.
In the springs of 2010 and 2011, many observers who thought they detected evidence that the economy had decisively turned around were disappointed a few months later, Summers wrote.
“Several considerations suggest that this time may be different,” he said.
Among them, he listed employment growth that has been running “well ahead” of population growth for some time, a higher U.S. stock market, and the fact that expected market volatility is “lower than at any time since 2007.”
He also cited pent-up demand from consumers who have long put off purchases of new cars and other durable goods, and signs that the housing market is beginning to stabilize.
“For years now, the rate of new families setting up households has been well below normal as more and more young people have moved in with their parents,” Summers wrote. “At some point they will set out on their own, creating a virtuous circle of a stronger housing markets, more ‘family formation’ that boosts demand, further improvement in housing conditions and so on.”
What Happened to Rates Last Week?
Mortgage backed securities (MBS) gained a very modest +8 basis points from last Friday to the prior Friday which helped mortgage rates to pull back from their highs (Mortgage rates have an inverse relationship to mortgage backed security prices).
We saw our highest mortgage rates of 2012 on Tuesday. This was primarily due do the continued sell off of Treasuries and mortgage backed securities by banks that were no longer forced to hold them after passing the latest “stress test” by the Fed. We had a mixed bag of housing data as there was a pickup in Housing Starts and Building Permits but Existing Home Sales came in lighter than market expectations.
What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and I will be watching these reports closely for you and let you know if there are any big surprises:
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.
Quote of the week:
“For years now, the rate of new families setting up households has been well below normal as more and more young people have moved in with their parents,at some point they will set out on their own, creating a virtuous circle of a stronger housing markets, more ‘family formation’ that boosts demand, further improvement in housing conditions and so on.” – Lawrence Summers, former Treasury secretary
Vince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
vince@coloradomortgageguy.com
19519 E Parker Square Dr
Parker, CO 80134
www.coloradomortgageguy.com
If you enjoyed this article, please consider sharing it!
Bull Market in Bonds Nearing an End?
Mortgage rates have seen historic lows due to a long-running bull market in bonds. Specifically, mortgage backed securities. Demand has far exceeded supply which has driven down mortgage rates. As demand starts to pull back, mortgage rates will begin to move upward.
Say goodbye to the longest bull market for bonds in history. The market is at a turning point, say portfolio managers—some of whom are running the nation’s largest bond funds. The reason: growing worries about inflation . While it is not a problem right now, there are several strong economic factors that typically lead to higher prices down the road.
Rates are already starting to rise, even without the Fed. This week, Treasuries and Mortgage Backed Securities saw a sharp sell-off, bringing yields—which move opposite to prices—to their highest level since October.
Rising yields, when coupled with inflation, are a double-whammy to the value of bonds.
With job growth comes purchasing power and pricing pressure on businesses and consumers. Yigal Jhirad, portfolio manager for Cohen & Steers, thinks this pressure is already underway.
While significant inflation and higher mortgage rates are still far down the road, it is clear that they are on the horizon. This is actually a good thing for housing. The housing market has always performed better in the “sweet spot” of mortgage rates which is in that 5.50% to 7.00% range.
What Happened to Rates Last Week?
Mortgage backed securities (MBS) lost -93 basis points from last Friday to the prior Friday which pushed mortgage rates significantly higher from the prior week and marks the second straight week of higher mortgage rates.
We have received month after month of positive economic news which would normally pressure mortgage rates upward but due to global instability, mortgage rates have benefitted from strong demand in MBS which have offset the positive economic news.
But bonds started to sell off in a big way last week which pushed mortgage rates higher.
Why? Because banks started to dump their vast holdings of Treasuries and MBS.
Banks had to hold on to capital while they were undergoing the Fed’s “stress test”. The “stress test” results were released last week and as a result, each bank definitively knew how much excess capital they had.
This meant that they could finally liquidate their holdings of their very low yielding mortgage backed securities….this caused demand for MBS to fall off which pushed mortgage rates upward.
What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages.
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.
Quote of the week:
“Inflation will be higher than they (Federal Reserve policy makers) think” – Mark Zandi, Moody’s Analytics chief economist
Vince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
vince@coloradomortgageguy.com
19519 E Parker Square Dr
Parker, CO 80134
www.coloradomortgageguy.com
If you enjoyed this article, please consider sharing it!
Consumer Sentiment Continues Climb:
The willingness to “pull the trigger” on a home purchase has more to do with how a home buyer feels about their own financial stability and their view of the economy than any other factor.
So, it is good news for the housing industry to see the Thomson Reuters/University of Michigan’s Consumer Sentiment Index continuing to climb upward from our lows of last summer.
The reading of 75.3 was a slight improvement from the prior month and the highest reading in a year. It also continues the trend of improving consumer sentiment since our lowest readings in August 2011.
A third of consumers spontaneously reported hearing about more job opportunities, the highest proportion ever recorded by the survey. The U.S. jobless rate unexpectedly fell to a three-year low in January, stoking hopes the labor market is healing.
What Happened to Rates Last Week?
Mortgage backed securities (MBS) gained just +7 basis points from last Friday to the prior Friday which moved mortgage rates slightly lower on a week-over-week basis.
We had a rough start to the holiday-shortened week with the highest mortgage rates on Tuesday afternoon in reaction to the approval of the second Greek bailout.
But the market reversed course for the rest of the week which helped to pull mortgage rates back down.
MBS rallied on a very strong 7 year U.S. Treasury auction and amid concerns that the magical Greek bailout package would not be enough to stem the tide of financial weakness in Europe.
What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages.
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.
Vince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
vince@coloradomortgageguy.com
19519 E Parker Square Dr
Parker, CO 80134
www.coloradomortgageguy.com
If you enjoyed this article, please consider sharing it!
New Homes Data Shows More Gains:
The Commerce Department said Thursday that builders broke ground on a seasonally adjusted annual rate of 699,000 homes in January. That’s up 1.5 percent from December and reached the highest level since December 2008. Construction began work on 508,000 single-family homes last month and December single-family homes were revised up strongly to show builders started 513,000 homes — a 12 percent gain from November.
In a separate report, building permits, a gauge of future construction, rose 0.7 percent. The majority of those permits were for single-family homes. It can take 12 months for a builder to obtain a permit and construct a single-family home.
In a third report released last week, A measure of builder sentiment has risen for five straight months and is now at its highest level in nearly five years. Many builders are seeing more people express interest in buying a home, leading them to believe 2012 could be a turn-around year for the market. Mortgage rates have never been cheaper. And home sales started to rise at the end of last year.
What Happened to Rates Last Week?
Mortgage backed securities (MBS) lost just 7 basis points from last Friday to the prior Friday which moved mortgage rates sideways on a week-over-week basis. But MBS pulled back -65 basis points from our best levels on Wednesday. This means that mortgage rates were much higher on Friday than on Wednesday.
The reason for the big change in direction? Greece is the word.
Mortgage rates are artificially low due in large part to fear and concern about several members of the European Union defaulting. This has lead overseas investors to pour money into the safe-haven of our mortgage-backed-securities and as a result of that increased demand, mortgage rates fell.
MBS sold off (less demand, which equates to higher rates) after the European Central Bank announced that they would hold a “bond swap” for those that own the worthless Greek debt. This was seen as the last step that was needed to get Greece the next round of bailout money.
What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises:
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.
Quote of the week:
“The upturn in permits and starts in recent months has been consistent with the surge in the … survey of homebuilders, which has surprised the markets to the upside for five straight months” – Ian Shepherdson, chief U.S. economist at High Frequency Economics
Vince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
vince@coloradomortgageguy.com
19519 E Parker Square Dr
Parker, CO 80134
www.coloradomortgageguy.com
If you enjoyed this article, please consider sharing it!
New home construction starts strong in 2012
By Hibah Yousuf @CNNMoneyMarkets February 16, 2012: 9:34 AM ET
New home construction got off to a strong start for the year, with housing starts and building permits rising in January on a monthly and annual basis.
NEW YORK (CNNMoney) — New home construction got off to a strong start for the year, with housing starts and building permits rising in January on a monthly and annual basis — another sign that the U.S. housing market and broader economy are headed in the right direction.
The Census Bureau reported that housing starts rose to an annual rate of 699,000, up 1.5% from December. Compared to a year ago, housing starts were almost 10% higher.
Building permits, which are less affected by weather than starts, came in at a 676,000 annual rate in January, up 0.7% from the prior month and 19% from a year earlier.
Results were also better than industry expectations. A consensus of industry experts from Briefing.com had forecast starts of 671,000 and permits of 675,000.
Housing completions fell to an annual rate of 530,000 in January, however, a drop of 12% compared to December, but up more than 4% from a year earlier.
“Along with the overall positive tides seen recently in the economy, it looks as if residential building is starting to follow suit,” said Mike Lubansky, senior financial analyst at Sageworks. “Although residential building still has a steep hill to climb in order to achieve a full recovery to pre-2007 levels, it does look to be on the right trajectory.”
For a full-blown recovery, experts say good news needs to continue out of the job market. So far, the unemployment rate has dropped for five straight months, and now stands at 8.3%, the lowest since February 2009.
Initial claims for unemployment benefits have also been falling. On Thursday, a government report showed that the number of Americans filing for jobless claims plunged to the lowest level in nearly four years.
“Today’s data are further proof that the recovery solidified in late 2011, and that momentum has carried forward into 2012,” said Gus Faucher, senior economist at PNC Financial Services Group. “More importantly, the likelihood of an even stronger recovery is growing.”
He added that a continued pick-up in job growth this year could support faster consumer spending growth and a stronger rebound in housing. But, he added, the financial crisis in Europe remains the largest downside risk.
Vince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
vince@coloradomortgageguy.com
19519 E Parker Square Dr
Parker, CO 80134
www.coloradomortgageguy.com
If you enjoyed this article, please consider sharing it!
