Who really cares if gay people have the right to marry. Let them get married what is the difference? If 2 people love each other no matter what the sex, creed, religion, race...does it really matter...NO. Stop the hate.
I keep reading consumer confidence is on the uptick but where? I work at a store and people are not splurging. They are buying one item as a reward or something they need but that is about it. Long gone are the days of the $1000 handbags just for fun.
It makes me so sad to read that any parent feels there is no way out but to kill themselves and their children. I have been reading more and more of parents doing this and it just makes me cry. The children are innocent let them be adopted by someone or cared for by a relative. Killing them is not the answer.
Inflation Concerns Push Rates Higher
With little other economic news, inflation concerns weighed on mortgage rates this week. Despite rising commodity prices, Fed officials appear to be in no rush to tighten monetary policy. Investors, worried about the risk of higher inflation, pushed mortgage rates a little higher.
While the ECB (European Central Bank) and China raised rates this week to fight inflation, US Fed officials continued to downplay the risks. According to the Fed Minutes released this week and in recent statements, the majority of Fed officials maintain the view that higher commodity prices are unlikely to raise future inflation expectations. These officials expect the impact to be "transitory" and "muted". To support the economic recovery, they believe that the Fed should move slowly in removing monetary stimulus. The more hawkish minority at the Fed is gaining support, however, and several Fed officials have suggested that the Fed may need to tighten monetary policy before the end of the year. In light of the Fed's debate, investors will be closely watching next week's important inflation reports.
Even with higher energy prices, consumers continued to spend freely on other items last month. The March sales figures from about two dozen large retail chain stores released on Thursday were stronger than expected. Consumer spending accounts for about 70% of economic activity, so this data was encouraging news for the economy.
As reported in the Wall Street Journal today "A lengthy government shutdown could put a halt to some of the basic functions of Wall Street.
New issues of bonds and stocks could be held up during a government shutdown, since they often require registration with regulators. Initial public offerings may be impossible. Mergers could be brought to a standstill, since they often require the approval of a number of regulatory bodies."
This is the small picture the bigger picture of this is how it is going to cause us headaches. One example is if the government shuts down so does HUD so any homes that are ready close with a HUD contract are now stalled until things get back up and running. When that stalls and things don't close all the little guys doing real estate transactions don't get paid (title, escrow, attorneys, appraisers, realtors, pest inspectors..the list goes on and on) so the economy slows down even more. This is just one example. Gotta get this country back on track.
The weather is getting beautiful here in Arizona. Time to get off the sidelines and consider moving into one of the beautiful homes on the market here in Arizona. Prices are so low and mortgage rates are amazing. Don't wait too long you will miss your opportunity.
Mortgage Rates Increase
An improving economic outlook was unfavorable for mortgage rates this week. The Dow stock index reached a new high for the year, as investors shifted funds from bonds to stocks. Weaker than average demand for the 7-yr Treasury auction also helped push mortgage rates a little higher.
The economic data released during the week generally was a little stronger than expected. Most significant was the monthly Employment report. Against a consensus forecast of 195K, the economy added 216K jobs in March. The Unemployment Rate declined to 8.8%, the lowest level since March 2009, from 8.9% in February. Stronger economic growth increases inflationary pressures, which is negative for mortgage rates.
The recently passed Dodd-Frank Act requires Federal housing regulators to define the characteristics of loans which will be exempt from new risk retention requirements. Such loans will be known as Qualified Residential Mortgages (QRM). Non-QRM loans will likely require higher interest rates than QRM loans. This week, the first proposed QRM characteristics were announced. In the proposal, all government guaranteed or insured loans, including FHA/VA, Fannie Mae and Freddie Mac loans, will be QRM. Unfortunately, outside of these agency loans, the definition was very strict, making it hard to qualify.
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