The Dow edged up a little higher this past Friday as Fed Chief, Ben Bernanke stated he thinks there is still space for the Fed to step in to help the economy. The Dow closed at 13157.97 as it added 100.51 points, rising for the first time during the week. That erased much of Thursday’s 115 point slide, reinvigorating a stalling rally that has driven the benchmark up almost 9% since June, according to a report in the Wall Street Journal this past weekend. This week Wall Street will focus on the economic policy symposium hosted by the Federal Reserve Bank of Kansas City in Jackson Hole, Wyoming where Mr. Bernanke will be speaking this coming Friday. Spending by U.S. consumers most likely climbed in July by the most in five months, easing fears the biggest part of the economy is backsliding, economists said before a report due this week. What affects consumer spending, is gas and food prices (housing too). I hope we will start to some more easing in those areas-soon.
Real Estate, Mortgage Industry, and Other Economic News
“Financially, S.A. among healthiest” was a recent mini headline in the S.A. Express News. The article stated that ‘financially” San Antonio is the 10th-healthiest metro area among the nation’s 30 largest urban areas according to a score on the CredAbility Consumer DISTRESS Index. The Index measures employment, housing, credit, how families manage household budgets, and net worth.
U.S. home sales of previously occupied homes rose 2.3 percent in July from June to a seasonally adjusted annual rate of 4.47 million, the National Association of Realtors said. Over the past 12 months, sales have increased an impressive 10 percent. Sales of NEW homes in the U.S. rose 3.6 percent in July to match a two-year high reached in May. Basically, I believe the main reason for the increase in sales is that Mortgage rates have remained at very low levels for an extended period of time-allowing folks more time to get jobs and save enough for a down payment. Freddie Mac reported that the rate on the average 30 year fixed rate index rose to 2.66 percent, up from 3.62 percent just a week ago. So, rates are edging higher. When that happens, home-buyers usually start to think that maybe they should start looking into buying now-so that they can still take advantage of today’s low Mortgage rate environment.
Don’t forget to come out and enjoy the Kendall County Fair this Labor Day weekend. Parade starts at 10 am Saturday. Fun for the entire family.
(This article is for informational purposes only. Do not use it as financial advice. Information for this article include , but not limited to, The Wall Street Journal, S.A. Express News, Boerne Hill Country Weekly. For questions/comments contact Tony Stevenson at 1.800.460.6990 or email: firstname.lastname@example.org)