Our Real Estate Blog

Weekly Preview (7/17/2011)

July 18th, 2011 7:40 AM by Lehel S.

This Week; like last week there is a lot of focus on the debt situations in Europe and it continues to drive money into US treasuries supporting US rates and mortgage rates. Last week Italy took the stage while Greece remains on life support. Ireland, Portugal and Spain are likely next in line; all those countries are essentially bankrupt being taped together with EU and IMF help.
 
The US debt and budget mess continues as our politicians continue to act like children, unwilling to work out a compromise. At the end of it all the debt ceiling will be raised and the US will not default or shut down, in the meantime the jockeying will continue to the last minute. In the end there isn't likely to be any meaningful spending cuts, the Democrats will have held ground with only cosmetic cuts. This week has a lot of housing data; June building starts and permits, the NAHB housing index, existing home sales; the main economic data point, the Philly fed business index on Thursday along with weekly claims. The bond and mortgage markets remain positive as long as equity markets decline and the debt problems in Europe stay on the front burner. The only concern we have is how much lower interest rates can decline; we are in uncharted territory with depressed global economies and global sovereign debts (including the US). Expect choppy and continued volatile markets.
Posted in:General
Posted by Lehel S. on July 18th, 2011 7:40 AM

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