Thursday, July 06, 2006

News from my lending guy… & Happy 4th of July

HAPPY BIRTHDAY TO THE USA…230 YEARS OLD AND LOOKING BETTER THAN EVER! Just think about the past few years - a market crash, recession, terrorist activity and war - yet the US economy still marches onward and upward. In fact, the Fed is watching the economy continue to cook forward, and seems to think it may be too hot. So they did it again, hiking rates for the 17th consecutive time within two years, bringing the Fed Funds Rate to 5.25%. Since the .25% hike was so widely expected, it wasn't much of a market mover on its own - but what was important was the wording of the Policy Statement, saying that "economic growth is moderating...and inflation expectations remain contained...yet the Committee judges that some inflation risks remain."

Translation of the Fed Speak is that inflation remains relatively tame, which was good news for Bonds and therefore home loan rates, improving slightly for the first time in a month.

Last week also brought news on the Housing Sector, with both New and Existing homes showing better than anticipated sales. The inventory supply for new home sales improved to 5.5 months, down from the 5.8 months reported previously, while existing home inventories rose slightly to 6.5 month supply. Another interesting note from the report…the current median sales price of an existing home in the US rose $230,000, up 6% year-over-year.

End clip from the email he sends out.

Rates may taper a little … Message: If you are going to buy do it now or pay more.

Call me to help short out the best one to buy. Mar Vista/Palms Residential or Condo.

Keith Lambert – 310-754-8116

Boardwalk Realty, Marina Del Rey