By Tony Stevenson/SWBC Mortgage
Economic News Week: October 24, 2011
The DOW ended up at 11808.79 on Friday. “Stocks rally on strong earnings report”, was a headline in the S.A. Express News this past Saturday. The article continued to state that the DOW has been up 4 straight weeks in a row, the first time that has happened since January of this year. The combination of strong corporate earnings, better economic news and a sense European officials were taking their debt crisis more seriously have helped lift stocks-a comment by Phil Orlando, chief equity market strategist at Federated Investors stated. The quarterly earnings season is off to a strong start. Of the 118 companies that reported earnings so far, 75 percent have beaten estimates according to financial data provider Fact-Set. One earnings report said that Citigroup’s third quarter earnings rose 74 percent. Wells Fargo results stated an increase in net income of more than 20%. Do you think there is any correlation to corporate earnings as to why the “Wall Street” protestors are doing what they’re doing? All these corporate profit reports without strong job growth may be just one of the main reasons. The question most folks have to answer for themselves is not the cause of our economic woes, but the cure.
Local Economic News
An earthquake just south of San Antonio caused a little stir- but no damage this past week. The earthquake registered at 4.3. An item of concern was the cause-possible fracking form the Eagle Ford Shale. However, it was quickly dismissed as one geologist suggested that the center of the earthquake and depth-was far below whatever “fracking” below the surface there may have been.
I don’t know about you but, I think the cooler weather has had a definite positive impact-if anything-just on personal attitude. It seemed to me that folks were a little happier and attitudes were on the positive side of things versus the negative this past week. I know I was. Even with no rain up until recently, the cooler weather has had a positive impact which in turn I think- has helped our economy. Isn’t it amazing what a little “good” weather can do for our economy and our smiles?
If you’re interested, the 43rd annual International Car and Truck show begins this Thursday thru Sunday in San Antonio. Local auto dealers will be displaying their new cars and trucks. The retail auto sales industry has taken a hit in the past regarding purchases during these tough economic times. It seems the auto sales business has taken a turn for the better. This is good news for our local economy.
Real Estate and Mortgage Industry News
According to Freddie Mac, mortgage rates took a small dip last week. The rate dropped to 4.11% from 4.12% for the 30 year fixed rate index. Also reported last week, home builders started projects in September at the fastest pace in 17 months, another hopeful sign for the economy. Plus, home builders were less pessimistic the National Association of Home Builders said last Tuesday. They reported that their Index of Builder Sentiment report this month rose 2 points. A small increase but none the less- an increase!
“Before you do anything, anything at all, you should make sure you are pre-qualified for the financing,” said real estate agent Trey King in today’s S.A. Express News. The report stated that before home buyers, especially first-time home buyers, enter the market, they always ask how they can prepare for the daunting task of buying a new home. Which is why getting pre-qualified is so important. Realtors do not like showing prospective home buyers homes unless they have at least been pre-qualified. I might also add that those wishing to get pre-qualified use local Mortgage Lenders and Realtors. Yes, there is still the internet but, borrowers do not get the same type of one-on-one personal service as they would by using local Realtors and Lenders. Plus, you could get bad advice. At least by using local folks, borrowers can get sound advice from taking advantage of the “personal and consultative” approach to the home buying process. Using such internet lenders as Hanging Tree or DieTech (yes, I’m being funny with the names) could be more trouble than its worth. Would you use an internet doctor, dentist, or any other health professional with your health issues? Then why would you trust and use an internet home buying service or lender with one of the most important purchases of your life?
Economic Data due this week: Continued 3rd quarter corporate earnings. Tuesday: Case-Shillers Index of Home Prices for August. Tuesday: Consumer Confidence Index for October. Wednesday: Durable Goods Report for September. Wednesday: New Home Sales report for September. Thursday: Weekly Jobless Claims. Thursday: Freddie Mac releases weekly mortgage rates. Thursday: Pending Home Sales Index for September. Friday: Personal Income and Spending report for September.
Quote of the week!
You cannot solve a problem until you acknowledge that you have one
And accept responsibility for solving it.
--------Zig Ziglar
REAL ESTATE BY DESIGN
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KERRVILLE, TEXAS 78028
TONI MANCHESTER, BROKER/OWNER
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