The DOW ended higher for the week with little or no surprises from the European markets or the U.S. economy for that matter. The DOW closed at 13,207.95 up 111.78 points. Refinery troubles, including the fire at a major Chevron plant in northern California, rising oil prices and the effects of the drought have sent gasoline prices up by double-digit numbers across the nation in recent days. Both of Texas’s senators have joined other congressional reps to ask that the EPA modify or waive a rule that requires a certain percentage of the country’s corn be used to produce fuel, according to a recent tidbit article in the S.A. Express News. U.S. employers posted the most job openings in four years in June, which is a positive sign that hiring will pick up in coming months. Jobs and gas prices seem to be what is holding off a faster recovery.

Real Estate, Mortgage Industry, and Other Economic News

According to M. Ray Perryman’s report in the S.A. Business Journal last week, the San Antonio-New Braunfels area has been among the strongest performing metropolitan areas in the country in recent years. Stability and growth in the decades to come will stem from traditional strengths for the area, such as education, health care, military and related activity. Tourism also continues to serve as stimulus, Mr. Perryman noted. I am adding my two cents here to include the Eagle Ford Shale that will contribute even faster amounts of economic growth for South Texas, which includes the San Antonio market. I just got back from a little R&R at Port A and couldn’t believe the amount of oil and gas companies I saw along the way. Education is most important, as we all should agree that a strong economy depends on how well we fund and educate our children, those who are our future. What happens in the San Antonio/Austin markets does spill over into the Texas Hill Country Real Estate, especially. With jobs come folks wanting to purchase homes. New developments begin and communities spend more on infrastructure to keep up with demand and the quality of life people want. That’s what makes Texas the state folks are wanting to move to and raise their families in. But we must fix education first if we are to succeed.

Finally, mortgage rates inched up slightly last week to around 3.59 percent for the 30-year fixed rate index, up from 3.55 percent the previous week, still low in anyone’s book. To help determine which way mortgage rates may go, watch the stock markets. When the Dow does good, then it is highly possible rates and/or costs will react by going higher. The opposite is true, too. When the DOW goes down, that means investors are putting their money into MBSs (mortgaged-backed securities) and not into stocks. Is this true all of the time? The only honest answer is no. It all depends on how well MBSs do in the course of a day. I have actually seen rates/costs go up and/or down two or three times in a one-day period. That is why it is so important to find a local Mortgage Loan Officer to help you determine when it is a good time to “lock-rate”. Try getting that type of one-on-one service from an internet-web provider you can trust. A personal “consultative approach” for the Mortgage process is always a better idea. The same holds true when buying a home. Find a local realtor to help guide you in the home-buying process. I know I sound like a broken record, but the time to buy a home is now!

(This article is for informational purposes only. Do not use it as financial advice. For questions/comments contact Tony Stevenson at 1.800.460.6990 or email: tstevenson@swbc.com)