Utah Rates, Programs, Purchases or Refinaning by Utah's Mortgage Guy

Today’s Housing market continues to stabilize, and although home prices are going up, the decline certainly seems to have subsided. Existing Home Sales came in better than expectations this month, touching their highest level in years.

Now to INFLATION, the Labor Department reported that the Producer Price Index (PPI) fell more than what was expected. Meanwhile, the Core Producer Price Index (PPI) - which strips out food and energy prices - was in step with expectations. In the past 12 months the overall PPI has dropped a record -6.8%(going back to 1947), when data was first collected on PPI. This decrease in prices is very reflective of a recession, but also points to the power of the cost reductions through technology and productivity gains.

Remember, inflation is a big arch enemy of Bonds and home loan rates. Although it's good news that inflation is not currently an issue, with an enormous amount of government spending, who really knows what the full consequences will be down the road. This will be something I will be watching in the weeks and months ahead.

On to the job Market. Initial Jobless Claims were reported at 576,000, which was a higher than expected, ironically after a string of better-than-expected reports recently. Claims readings will need to be in the below 450K's before the Unemployment can stabilize and start to improve we have a ways to go.

Most news of the week was not necessarily positive but Stocks found ways to take a ride higher, finishing last week on the positive side and at the highest levels so far this year. The Dow surged ahead by 155+ points closing at 9,504, the S&P gained 18 points to 1,026 while the NASDAQ rose 31 points ending at 2,020. Bonds and home loan rates were under pressure, and found it hard to maintain any good momentum. With 3 more Treasury auctions scheduled for this week the pressure for rates to go up could increase.

Please call and let me know if you have any questions about your own home loan situation, and how I can be of service to you. Or just call to say hi

Thanks Kelly Whytock