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Monday, March 29, 2010
ECONOMIC UPDATESLast Week in the News
Existing home sales fell 0.6% in February to a seasonally adjusted annual rate of 5.02 million units
from 5.05 million units in January. The inventory of unsold homes on the market rose 9.5% to 3.59 million, an 8.6-month supply
at the current sales pace, up from a 7.8-month supply in January.
Orders for
durable goods — items expected to last three or more years — rose 0.5% in February after a revised 3.9% increase
in January. Excluding volatile transportation-related goods, orders posted a monthly increase of 0.9%.
New home sales fell 2.2% in February to a seasonally adjusted annual rate of 308,000 units from an
upwardly revised rate of 315,000 units in January. Economists had expected a pace of 320,000 units. It was the fourth straight
monthly decline and the lowest pace since record keeping began in 1963.
Initial
claims for unemployment benefits fell by 14,000 to 442,000 in the week ending March 20. Continuing claims for the week ending
March 13 fell by 54,000 to 4.648 million, the lowest level since December 20, 2008.
The Reuters/University of Michigan consumer sentiment index for March’s final reading was 73.6, matching February’s
final reading. The index is 28% higher than it was one year ago. During the economic expansion that ended in December 2007,
the index averaged 88.9.
In its third and final report, the Commerce
Department announced that gross domestic product — the total output of goods and services produced in the U.S. —
increased at an annual rate of 5.6% in the fourth quarter of 2009, rather than the 5.7% increase initially reported. For all
of 2009, the economy contracted 2.4%.
Upcoming on the economic calendar are reports
on the housing price index on March 30, factory orders on March 31 and construction spending on April 1.
Provided by:
Judy Haller
Prospect Mortgage
3985 Prince William Co. Pky., Suite 104
Woodbridge,
VA 22192
Office: (703) 590-7132
Monday, March 22, 2010
ECONOMIC UPDATESLast Week in the News
Industrial
production at the nation’s factories, mines and utilities increased 0.1% in February, following a 0.9% gain in January.
It was the eighth consecutive monthly increase. The overall factory-operating rate rose to 72.7% of capacity in February from
72.6% in January.
The National Association of Home Builders/Wells
Fargo housing market index fell two points in March to 15. Economists had anticipated a reading of 17. An index reading below
50 indicates negative sentiment about the housing market. The last time the index was above 50 was in April 2006.
The combined construction of new single-family homes and apartments
in February fell 5.9% to a seasonally adjusted annual rate of 575,000 units. The decrease was largely blamed on winter blizzards
in the Northeast and South. Applications for new building permits, seen as an indicator of future activity, fell 1.6% to 612,000
units.
Import prices fell 0.3% in February following a
1.3% increase in January. The drop was driven by 2.2% decline in petroleum prices. On a year-over-year basis, import prices
are up 2.1%. According to the report, export prices fell 0.5% in February.
The producer price index, which tracks wholesale price inflation, fell 0.6% in February, following a 1.4%
increase in January. Economists had expected a decrease of 0.3%.
Consumer prices were flat last month following a 0.2% gain in January. A rise in food prices in February was offset
by a decline in gasoline and other energy costs.
The index
of leading economic indicators — designed to forecast economic activity in the next three to six months — rose
0.1% in February after a 0.3% gain in January. It was the 11th straight monthly increase and the longest series of gains since
2003.
Upcoming on the economic calendar are reports on
existing home sales on March 23, new home sales on March 24 and consumer sentiment on March 26.
Provided by:
Judy
Haller
Prospect Mortgage
3985 Prince William Co. Pky., Suite 104
Woodbridge, VA 22192
Office: (703) 590-7132
Friday, March 19, 2010
Mold Conveys, No Extra ChargeI was sent the specs on a home over a month ago by a
fellow realtor who knows I buy homes in rough shape, fast. He said, Justin, check out this place.
It’s a foreclosure. Its price at about $550,000 it is worth about $500,000 after fix up and
it has a major mold issue. Without even seeing the property I did the math. (You
did catch that the bank was over pricing it by $50,000 even if it were in perfect condition?) I figured
if it had a major mold issue it probably needed complete remodeling as well. I estimated $80,000-100,000
in repair costs. (I get better pricing than the average consumer, Joe the home buyer would pay at least
$120,000) I deducted that costs, all the transfer costs for buying and selling a home, finance costs and
desired profit margin and I sent in an offer of about $250,000. The bank counter offered me at $550,000,
the original list price.
I brushed the house off and moved on.
I came back to it recently and noticed it was still available. I instructed my colleague to reach
out to the listing agent again. The agent said they might be a little more flexible if we can get
up to the $300,000 mark. Upon hearing this I said I would get over and take a look at the home.
I was thinking that since this bank was so stubborn that maybe I had been fed bad information. The
house must not be in that bad of shape if the bank is so confident in its pricing.
 
I walked into the home this very afternoon and saw one of the worst disasters
I have seen in quite some time. These pictures were taken just this afternoon. The entire
basement is moist with active growing mold. This is very thick mold. The one picture
is of a bedroom door with mold growing on it as thick as a nickel. The walls are moist and the drywall
is crumbling. The kitchen has been stripped of all cabinets and appliances. The bathrooms
are about the same. The roof on the garage needs to be replaced, and I’m not just talking the shingles,
I’m talking structural. The wood floors looked good and the brick exterior was nice, besides that
there wasn’t much else.
To me, the house was beautiful,
just what I like to see, a house that needs my help to become a home again. But, I shake my head and wonder
what are these asset managers thinking? What is there strategy or incentive to sit on these homes and let
them grow more mold and deteriorate further?
5:20 pm edt
Monday, March 15, 2010
ECONOMIC UPDATESLast Week in the News
According to the ICSC-Goldman
Sachs index, retail sales rose 2.9% for the week ending March 6. It was the biggest weekly gain in nine years. On a year-over-year
basis, retailers saw sales increase 3.4%, the best showing in two-and-a-half years.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week
ending March 5 rose 0.5%. Purchase volume increased 5.7%. Refinancing applications fell 1.5%.
The Commerce Department said wholesalers cut their inventories by 0.2% in January following a downward revised
1% drop in December. Meanwhile, sales at the wholesale level rose 1.3% in January, marking the 10th straight monthly gain.
The trade deficit unexpectedly fell
6.6% to $37.3 billion in January from a revised $39.9 billion gap in December. Economists had expected the trade deficit to
widen to $41 billion. Exports slipped 0.3% to $142.7 billion. Imports fell 1.7% to $180 billion.
Initial claims for unemployment benefits fell by 6,000 to 462,000 in the week ending March 6. Continuing claims
for the week ending February 27 rose by 37,000 to 4.558 million.
Retail sales rose 0.3% in February, following a revised 0.1% increase in January. Economists had anticipated
retail sales to decline 0.2% in February. On a year-over-year basis, retail sales increased 3.9%.
The Reuters/University of Michigan consumer sentiment index for March’s preliminary reading fell to
72.5 from February's final reading of 73.6. One year ago, the mid-March reading was 57.3. During the economic expansion that
ended in December 2007, the index averaged 88.9.
Upcoming on the economic calendar are reports on the housing market index on March 15, housing starts on March
16 and the index of leading economic indicators on March 18.
Provided by:
Judy
Haller
Prospect Mortgage
3985 Prince William Co. Pky., Suite 104
Woodbridge, VA 22192
Office:
(703) 590-7132
Monday, March 8, 2010
ECONOMIC UPDATESLast Week in the News
Consumer spending rose 0.5% to $52.4 billion in January, slightly more than economists had anticipated.
Personal income increased 0.1% to $11.4 billion.
The Institute for Supply Management
reported that the monthly index of manufacturing activity was 56.5 in February after reaching 58.4 in January. Nevertheless,
it was the seventh straight month of expansion. A reading above 50 signals expansion.
The Commerce Department reported that total construction spending fell 0.6% in January after falling 1.2% in December.
Economists had expected a decrease of 0.7%.
The Mortgage Bankers Association
said its seasonally adjusted index of mortgage applications for the week ending February 26 rose 14.6% to 629.9. Purchase
volume increased 9% to 214.5. Refinancing applications jumped 17.2% to 3,054.3.
The monthly index of non-manufacturing activity rose to 53 in February from 50.5 in January. A reading above 50 signals
expansion. Economists had anticipated a reading of 51. The reading was the highest since October 2007.
The National Association of Realtors reported that its pending home sales index, a forward-looking
indicator based on signed contracts, fell 7.6% in January after a revised 0.8% increase in December.
The Labor Department reported productivity rose at an annual rate of 6.9% in the fourth quarter. Labor
costs fell at an annual rate of 5.9%.
Factory orders rose 1.7% in January, slightly
below the 1.8% increase economists had anticipated. It was the fifth straight gain and follows a 1% increase in December.
The unemployment rate held at 9.7% in February. Employers cut 36,000 jobs in February,
far fewer than expected. The four-week average for continuing jobless claims fell 134,000 to 4.5 million.
Upcoming on the economic calendar are reports on wholesale trade on March 10, international trade on
March 11 and retail sales on March 12.
Provided by:
Judy Haller
Prospect Mortgage
3985 Prince William Co. Pky., Suite 104
Woodbridge,
VA 22192
Office:
(703) 590-7132
Monday, March 1, 2010
ECONOMIC UPDATESLast Week in the News
The Standard & Poor’s/Case-Shiller 20-city housing price index rose a seasonally adjusted
0.3% in December. It was the seventh consecutive monthly gain and follows a 0.2% increase in November.
The consumer confidence index fell to 46 in February from an upwardly revised 56.5 in January. Economists
had anticipated a reading of 55. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor
a trough in consumer confidence.
The Commerce Department reported new home
sales fell 11.2% in January to a seasonally adjusted annual rate of 309,000 units from a rate of 342,000 units in December.
Economists had expected a pace of 354,000.
Initial claims for unemployment
benefits rose by 22,000 to 496,000 in the week ending February 20. Continuing claims for the week ending February 13 rose
by 6,000 to 4.617 million.
Orders for durable goods — items expected
to last three or more years — rose 3% in January after a revised 1.9% increase in December. Excluding volatile transportation-related
goods, orders posted a monthly decrease of 0.6%.
Existing home sales fell
7.2% in January to a seasonally adjusted annual rate of 5.05 million units from 5.44 million units in December. The inventory
of unsold homes on the market fell 0.5% to 3.27 million, a 7.8-month supply at the current sales pace, up from a 7.2-month
supply in December and a 6.5-month supply in November.
The Commerce Department announced
that gross domestic product — the total output of goods and services produced in the U.S. — increased at an annual
rate of 5.9% in the fourth quarter of 2009, rather than the 5.7% increase initially reported last month.
Upcoming on the economic calendar are reports on construction spending on March 1, and factory orders
and pending home sales on March 4.
Provided by:
Judy Haller
Prospect Mortgage
3985 Prince William Co. Pky., Suite 104
Woodbridge,
VA 22192
Office: (703) 590-7132
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