Is the FHA and HUD excited about all of the new business
heading their way? Perhaps not… check out this article in Forbes, which
focuses on concerns about federalizing the US housing market, and a reminder
that the taxpayer supports these programs:
http://www.forbes.com/markets/economy/2008/04/23/fha-modernization-concerns-markets-equity-cx_md_0422markets15.html
Spending 70 greenbacks to fill up your gas tank once or
twice a week? Today won’t help: crude-oil futures are hovering around
$120 per barrel due to supply fears following the closure of the Forties North
Sea pipeline system and strike action from oil workers in Nigeria. At least you can check
out this nifty website. Just enter your zip code (on the upper right
corner) in the site below, and it tells you which gas stations have the
cheapest prices (and the highest) on gas in your zip code area - it's
supposedly updated every evening. http://autos.msn.com/everyday/gasstations.aspx?zip=&src=Netx
As you drive (or bike) through your neighborhood, and see
the “For Sale” signs, what percent are in foreclosure? For the
entire state of California
in the first quarter, foreclosed properties accounted for 33% of existing-home
sales compared with 3% a year ago, according to data aggregator DataQuick
Information Systems. The figure ranged from 5% of sales in San Francisco County
to 66% in San Joaquin
County.
Several investors have come out with 40-year fixed rate terms for the Agency
Jumbo loan programs. Perhaps this is a sign that liquidity is coming into this
market!
This week is packed with economic news in addition to
another FOMC meeting. Although there is nothing
today, tomorrow morning we have the Consumer Confidence Index for April,
an indicator of future spending by consumers (or at least the 5000 consumers
they survey). It is expected to show a reading of 62.0, which would be a decline
from March’s 64.5 reading. Wednesday morning we’ll see the
preliminary version of the 1st Quarter Gross Domestic Product (GDP), the sum of
all products and services produced in the U.S. Expectations are for a growth
rate of 0.4%. Also on Wednesday is the 1st Quarter Employment Cost
Index (ECI), which tracks employer costs for wages and benefits, expected +.8%.
Thursday we see the weekly initial unemployment claims and the March core PCE
deflator data. Finally, on Friday, the market gets the April unemployment
report.
This week’s FOMC meeting will begin on Tuesday but will not adjourn until
Wednesday afternoon, which is when the announcement of any changes to overnight
rates will take place (around 11:15AM PST). Expectations are for another cut of
.25% (which is priced into the market), but then no change in the foreseeable
future. Ahead of all that, we find the 10-yr sitting at 3.85% and mortgage
prices “a touch” better than Friday afternoon’s.
A lady walked into a pharmacy and told the pharmacist that she
needed some cyanide.
The pharmacist said, "Why in the world do you need
cyanide?"
The lady then explained she needed it to poison her husband.
The pharmacists eyes got big and he said, "Lord, have
mercy - I can't give you cyanide to kill your husband. That's against the law,
I'll lose my license, they'll throw both of us in jail and all kinds of bad
things will happen. Absolutely not, you can NOT have any cyanide."
The lady reached into her purse and pulled out a picture of
her husband in bed with the pharmacist’s wife.
The pharmacist looked at the picture and replied,
"Well, now. You didn't tell me you had a prescription."
Rob
