S&P Case-Shiller Home Price Index held steady yet close to multi year lows. Overall, the 10 city composite rose 4.1% with San Francisco and San Diego leading the way. The 20 city index jumped 3.2% with even Detroit seeing some gains. Las Vegas, south Florida, and parts of Arizona are still slipping albeit at a much slower pace than in previous months. Judging from the recent housing behavior, prices may be close to if not at a bottom. A good sign for all of us.
Consumer Confidence was also released, slipping well below forecasts to 48.5. Posting its third decline in four months, the sour jobs picture is doing all the damage as the level of those thinking that jobs are plentiful fell to 3.8%. Until we get jobs growth, the economy will struggle to get out of the ditch.
Interesting article by Zillow Mortgage Marketplace today stating that 29% of potential borrows do not qualify for a home loan. Biggest reason, ficos below 620. Market reaction to all of the above has been mixed with stocks trading both sides of unchanged and bonds doing a little better. Currently, the 10 year note is up 10/32’s, mortgage backs up 3/32’s, and stocks up 30 on the big board. With month end hedge fund extensions a bit better than normal, a supportive range trade looks to be in the cards. In English, that’s “steady as she goes” for Austin mortgage pricing.