Good Friday morning everyone - After a mixed day on Wall Street Thursday, the U.S. stock market started out on the upside this morning as better-than-expected earnings were reported from tech-bellwethers Oracle and Research in Motion (the Blackberry manufacturers) and the government's main inflation indicator, the Consumer Price Index (CPI) came in about what was expected. But since then and like yesterday, the market has turned mixed.
As of 10:20 AM, the U.S. stock market is up about 20 points (after being up 25 points, then down about 15) to 10,616 on the Dow while the bond market is now a little stronger after being lower this morning too.
The government reported this morning that the Consumer Price Index for August was up .3%. But when you take out the volatile food and energy costs, we get what's called the "core CPI" and that number was basically unchanged for not only August, but also for the last 12 months. The core CPI is actually watched more by economists than the total CPI number. With those low inflation numbers mimicking the stagnant economy as a whole, analysts are afraid that we're getting very close to a deflationary environment. And as I've stated many times in this report, we DON'T want that. So, the Federal Reserve is watching to see if they have to become even more accommodative using their monetary policy levers (by putting more cash into the system). And with very low inflation figures, they do have room to do that. And that COULD translate to even lower interest rates. We'll see.
Another report out today that was also not very positive was on consumer sentiment - a gauge of how the consumer feels about present and future economic conditions. Today's report by the University of Michigan showed that consumers are less optimistic about future economic conditions. Not really a surprise to us, but analysts had expected a slight improvement. Don't know why they thought that.
Today's Synovus Mortgage rate sheet (attached) is showing steady rates. Our 30-year fixed mortgage rates are 4.25% for conventional, FHA, and VA loans and 4.5% for USDA loans.
And if I can help you with your buyers and their mortgage needs, please contact me at your convenience at my office at 626-7566, or on my cell at 232-7753, or via email. I'll work closely with you and your buyers to make the mortgage loan process go as smoothly as possible all the way to the closing table. Thank you again and I hope you have a good September weekend. And may YOUR team win.
As of 10:20 AM, the U.S. stock market is up about 20 points (after being up 25 points, then down about 15) to 10,616 on the Dow while the bond market is now a little stronger after being lower this morning too.
The government reported this morning that the Consumer Price Index for August was up .3%. But when you take out the volatile food and energy costs, we get what's called the "core CPI" and that number was basically unchanged for not only August, but also for the last 12 months. The core CPI is actually watched more by economists than the total CPI number. With those low inflation numbers mimicking the stagnant economy as a whole, analysts are afraid that we're getting very close to a deflationary environment. And as I've stated many times in this report, we DON'T want that. So, the Federal Reserve is watching to see if they have to become even more accommodative using their monetary policy levers (by putting more cash into the system). And with very low inflation figures, they do have room to do that. And that COULD translate to even lower interest rates. We'll see.
Another report out today that was also not very positive was on consumer sentiment - a gauge of how the consumer feels about present and future economic conditions. Today's report by the University of Michigan showed that consumers are less optimistic about future economic conditions. Not really a surprise to us, but analysts had expected a slight improvement. Don't know why they thought that.
Today's Synovus Mortgage rate sheet (attached) is showing steady rates. Our 30-year fixed mortgage rates are 4.25% for conventional, FHA, and VA loans and 4.5% for USDA loans.
And if I can help you with your buyers and their mortgage needs, please contact me at your convenience at my office at 626-7566, or on my cell at 232-7753, or via email. I'll work closely with you and your buyers to make the mortgage loan process go as smoothly as possible all the way to the closing table. Thank you again and I hope you have a good September weekend. And may YOUR team win.
Danny Corte
Mortgage Loan Originator
Synovus Mortgage Corp.
(with Coastal Bank & Trust)
Mortgage Loan Originator
Synovus Mortgage Corp.
(with Coastal Bank & Trust)
If you'd like an analysis like this done for a specific neighborhood or town in Baldwin County, AL, please feel free to call or email me and I'll be glad to put one together for you.
Also, if you'd like more information on the Fairhope, Orange Beach, Gulf Shores, Daphne or Baldwin County markets, or on specific properties down here, feel free to email me at Terryl@FairhopeRealtyGroup.com; or call me at 251-990-8838.
Also, if you'd like more information on the Fairhope, Orange Beach, Gulf Shores, Daphne or Baldwin County markets, or on specific properties down here, feel free to email me at Terryl@FairhopeRealtyGroup.com; or call me at 251-990-8838.
You can also visit my web-site and search the MLS on your own at www.FairhopeRealtyGroup.com.
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