Admin – Kevin Martini is one of our business partners at All Cary Real Estate. Kevin provides a consultative approach to real estate financing – it’s not just a loan, its an integral part of your overall lifelong investment portfolio. If you want unparalleled service, local support, and a highly competitive rate for your loan, give Kevin Martini a call at 919.274.3700 or visit his website – www.kevinmartini.com.
Kevin will be providing a weekly forecast for the economy in general and how it affects the world of real estate financing called Martini Factor.
Without further ado, here is the first Martini Factor.
The volatile Stock earnings season continues, and as if that weren’t enough, the economic calendar also holds several big potential market movers.
Lots of economic reports are due for delivery this week, including Tuesday’s look at the Fed’s favorite measure of inflation, the Personal Consumption Expenditure index, and wrapping up with a bang on Friday with the monthly Jobs Report. If the week’s inflation numbers meet or are lower than expectations while the data for the economy is worse than expected, Bond prices should continue their recent upward trend and home loan rates will improve. However, if the reports reek of inflation or an overheated economy, Bond prices could quickly lose their recent gains, and home loan rates will worsen.
HOT…OR NOT? Although the heat is on weather-wise in most parts of the US, our recently overheated Stock market suddenly took an icy plunge lower last week. Just as quickly as the Dow had cracked the record level of 14,000, Stocks reversed course and lost 586 points for the week overall. The big cool down was triggered by a few different factors, including several weak Stock earnings reports and continuing concerns about the backlash from the subprime mortgage situation and tightening mortgage credit. And when the mood in the Stock market went sour, it happened fast – Traders and investors unloaded Stocks hand over fist.
But when they sell off Stocks, that money has to get parked somewhere, right? The glad beneficiary of the selling was the Bond market. As money flowed out of Stocks and into Bonds, the Bond market overall enjoyed a move higher with the influx of money, helping home loan rates stabilize and even improve very slightly.
kevin – thanks for the post! i look forward to many more