How is the Bond Purchasing Program Effecting the Housing Market?

Time will tell. As 2014 marches along, time will tell us what impact the Fed's tapering of its Bond purchase program will have on home loan rates.

Remember that the Fed had been purchasing $85 billion in Bonds and Treasuries each month to stimulate the economy and housing market. Starting this month, the Fed will now purchase $40 billion in Treasuries and $35 billion in Mortgage Bonds (the type of Bonds on which home loan rates are based). The decision to further taper these purchases will be dependent on economic data.

Speaking of economic data, Consumer Confidence rose to 78.1 in December, rebounding from the lows hit in October and early November due to the government shutdown. In housing news, the S&P/Case Shiller Home Price 20-City Index rose by 13.6 percent year-over-year in October. This was just below expectations, but up from the 13.2 percent annual gain recorded in September. Pending Home Sales for November ticked up slightly, while New Home Sales fell slightly to an annual rate of 464,000 units. However, the number of New Home Sales for October was revised up to 474,000, which was the highest level since July 2008. Overall, the housing market continues to improve.

What does this mean for home loan rates? The Fed will be closely monitoring economic reports in the coming weeks and months as it decides when to further taper its Bond purchases. The timing of further tapering could have a big impact on Mortgage Bonds and home loan rates this year. This is a key story to watch in 2014.

The bottom line is that now remains a great time to consider purchasing a Lake of the Ozarks home or refinancing your home loan, as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions at all for you or your clients. 

Wishing you a very happy New Year!

I would love the opportunity to help you manage your Lake of the Ozarks Mortgage Loan or refinance.  Give me a call at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com with any questions you may have!!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

NMLS #: 493712

Housing Market Looks Good with Home Prices Increasing by 12%

"Every day you make progress." Winston Churchill. And the housing market continues to progress in the right direction. Read on for details.
Last week, research firm CoreLogic reported that home prices across the U.S. rose by nearly 12 percent from June 2012 to June 2013. By comparison, home prices only rose 3.76 percent from June 2011 to June 2012. In addition, research and analytics firm Clear Capital said that prices rose 9.3 percent in the year ended in July.

The housing markets have turned the corner to greener pastures, but it's important to note that this pace of growth may be unsustainable. With home loan rates rising over the past several months, this rate of appreciation could slow.

In labor market news, Weekly Initial Jobless Claims rose by 5,000 in the latest week to 333,000, but this was below the 340,000 expected. This followed the Jobs Report for July, which was a bit of a disappointment with less jobs created than expected.

What does this mean for home loan rates? One of the biggest questions on everyone's mind is: When will the Fed start tapering their Bond purchases? Remember that the Fed has been buying $85 billion of Bonds a month to help stimulate the economy and housing market. This includes Mortgage Bonds, to which home loan rates are tied, and these purchases have helped home loan rates remain attractive.

The Fed has said the rate of their purchases will continue to depend on economic data, and could be increased or decreased accordingly. Last week, several Fed members spoke out in favor of tapering these purchases as early as the Fed's meeting in mid-September. However, with our economy growing at sub 2 percent, economic data between now and September will be a key factor in this decision.

The bottom line is that home loan rates remain attractive compared to historical levels and now remains a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients.

We would love the opportunity to help you manage your Lake of the Ozarks Mortgage Loan or refinance.  Give me a call at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com with any questions you may have!!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

NMLS #: 493712

Positive Signs in the Current Economy

There continue to be some optimistic signs in parts of our economy, specifically with the housing sector last month. Here are some indicators that the Housing Market is in good shape and it is a good time to consider purchasing a Lake of the Ozarks Home!!

• Existing Home Sales rose in May to reach the highest rate since November 2009. Housing Starts also rose by 7 percent in May to come in a whopping 28 percent higher than May 2012. 
• In other housing news, RealtyTrac reported that foreclosures rose by 2 percent in May from April. But the good news is that foreclosures have fallen 28 percent from where they were just one year ago. 
• The economy as a whole also received some good news last month. Standard & Poor's, one of the big three credit-rating agencies, raised the credit outlook for the U.S. from negative to stable. The manufacturing sector also received a boost of good news, as both the Philadelphia Fed Index and the New York State Empire Manufacturing Index came in well above expectations. And, consumers felt confident enough to open their wallets in May, as Retail Sales rose at the fastest pace in three months, led by demand for groceries, autos and building materials. 
• Although inflation at the wholesale level rose unexpectedly in May, inflation at the consumer level remains tame and overall inflation pressures remain muted, which should help keep Bonds and Lake of the Ozarks Home Loan rates at attractive levels. 
• Another factor that has helped Bonds and home loan rates remain attractive is the Fed's Bond purchase program (known as Quantitative Easing). Fed Chairman Ben Bernanke did say the Fed may begin tapering the program later this year and to finish by mid-2014. So this will be an important story to keep an eye on as economic news comes in over the next several weeks and months. 

The bottom line is that home loan rates remain attractive and now is a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or someone you know.