Market Commentary

Looks like Market is improving for Newport Beach, Newport Coast Area Real Estate.

Last week we discussed expanding loan guidelines and parameters for jumbo loans, which I believe is a good sign because it indicates banks are becoming more comfortable with the state of the market. Corporate earnings reporting is in full swing right now and surprise, surprise… large companies such as JP Morgan Chase, Wells Fargo, Google, and conglomerate GE are reporting better than expected earnings. While we are not out of the thick of it yet, it is very encouraging to me to see companies from different sector of the economy doing well despite the current economic environment.

The New York Federal Reserve Bank reported that they purchased nearly $21.7 Billion in mortgage backed securities, mostly in the 4-6% range. It is important for us to remind our clients that unless the Fed starts buying 3.0% and 3.5% mortgage bonds, rates will not improve further. The Fed has given no indication they are going to buy 30 year fixed coupons in the 3.0% - 3.5% range and I personally do not see them doing this, thus now is probably the most opportune time to lock a 30 year fixed rate mortgage. Additionally, interest rates really have no where to go but up.

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