The markets rose after Fed Chief, Ben Bernanke and the Boys announced they would be purchasing more mortgage-backed securities indefinitely and keep rates low far into the year 2015. In other words, here’s QE3-Quantitive Easing part III. The Fed had been hinting all along that they would take action in order to spur along the U.S. economy so that it would not start a backwards trend. The DOW Industrials gained 2.2 percent for the week to close at 13593, and the S&P 500 gained 1.9 percent to 1465.77-their highest closes since December 2007. Not too shabby in my opinion.
Retail Sales notched its highest reading since May as it rose 0.9 percent in August from July alluring that Americans feel more upbeat about the economy, albeit gas prices. Plus, consumers bought more Cars and trucks the month before. U.S. companies also restocked their shelves in July at the fastest pace since January which very well could boost economic growth because rising inventories push –up factory production. A retail search/survey company, Shopper Trak said that retail revenue in November and December should be up by 3.3 percent during what’s considered the biggest shopping period of the year. JP Morgan Chase’s Michael Feroliu estimates that iPhone 5 sales could boost U.S. economic growth in the fourth quarter by up to 5 percent. I didn’t realize that the sale of a single product could have far reaching results. Go iPhone. I am all for economic growth and recovery.
Real Estate, Mortgage Industry , and Other Economic News
After the Fed announced QE3; mortgage rates are expected to stay low well into 2015. Some economists predict a 3.25 percent 30 year fixed rate within a couple of weeks. I am not predicting that. There is still a lot of other economic traction that will enter the picture-such as politics and the up-coming Presidential elections in November. I do think mortgage rates will hang around the mid to high 3’s. Higher home prices have helped homeowners whose properties have fallen below what they borrowed to purchase them. The number of “underwater” homes-nationwide fell to 10.8 million at the end of June according to record keeper CoreLogic., down from 11.4 million at the end of March.
According to an article this past Friday in the S.A. Express News, the San Antonio housing market “sizzled’ in August, with home sales reaching their highest point in four years. Plus, in San Antonio, the median price of homes grew nearly 4 percent causing home-buyers to leap off their prospective fences and get into the local housing market. SABOR President and CEO Angela Shield’s says that, “what we’re seeing is first-time homebuyers are getting into the market and we’re seeing people buying up.” She also stated in the article that, “it’s buying power-and because rates are so low, it allows your money to go further.” I really believe the current real estate market will be ever-increasing as the year continues.
Blanco, Texas: The Texas Department of Housing and Community Affairs (TDHCA) announced last week that it will help finance a $2 million loan for the construction of a new affordable rental property in Blanco, expanding housing options for younger working families and senior citizens while revitalizing the community and local economy.
Finally, “How about some football?” Kerrville’s own- Johnny Manziel- Quarterback for A&M, accounted for 6 TD’s against SMU on Saturday. He had four passing and two rushing TD’s. The A&M defense was able to stop the Mustangs as well. Kerrville is proud! As for myself, I attending the Lone Star “festival” Football Conference at Jerryville (The New Cowboy’s stadium) on Saturday with my family: Son- Adam with his wife Kenna-both Tarleton State University graduates, Son- Clint who is a Jr. at Tarleton State University, and my “Eye Candy”-of going on 27 years-my wife Gayla. We watched Tarleton State University play Abilene Christian University. Even though Tarleton lost 34-31, it was amazing watching these two teams play at the Cowboy’s stadium. Jerry Jones, you did something right for a change! So, sorry the Cowboys lost though. Maybe an eye-opening game like that will pull our Cowboys together to have a winning season.
(This article is for informational purposes only. Do not use it as financial advice. Information for this article obtained from , but not limited to, The Wall Street Journal, S.A. Express News, Blanco County News, Boerne’s Hill Country weekly. For questions/comments contact Tony Stevenson at 1.800.460.6990 or email: firstname.lastname@example.org).