Are you searching for a Phoenix, AZ home?  If so, Phoenix area homebuyers should be monitoring interest rates every day! Bookmark or sign up for our RSS feed or Twitter feed to receive this market update on a daily basis. Interest rates can have significant swings on a daily and have a huge impact on affordability for Phoenix area homebuyers.

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So, here is today’s update for Phoenix area homebuyers:

Interest rate markets started softer but by 9:30 the 10 and mortgages were trading better, but not much. The rate markets remain bullish, however we are at levels that may be difficult to improve on unless equities completely collapse (and that appears unlikely). We will continue floating to start but caution to keep in touch with our rate alerts.

Treasuries and mortgages opened a little soft prior to 8:30 release of weekly jobless claims. At 8:00 the 10 yr -3/32 and mortgages -3/32; the DJIA futures trade had the index +70. At 8:35, shortly after the weekly claims data, the 10 yr  -4/32, mtgs -2/32 and the DJIA +80. At 9:30 the DJIA opened +50, 10 yr note +7/32 (.21 bp), mortgage prices +6/32 (.18 bp).

Weekly jobless claims were expected to have declined 11K to 540K, claims fell 33K to 521K after a small increased revision last week from 551K to 554K; the lowest since January, a sign the labor market is deteriorating more slowly as the economy emerges from the recession. Continuing claims, a more interesting number, declined to 6.04 mil (-72K for the week) after a slight upward revision last week from 6.09 mil to 6.112 mil. Treasuries saw initial selling on the better looking weekly claims and the decline in continuing claims. The 10 yr yield jumped to 3.21% from 3.19% close yesterday and mortgages declined 2/32 (.06 bp). Not much of a reaction but with the 30 yr bond auction later today it lessens the outlook of improvement in the rate markets. While the figures today indicate improvement, government data last week showed more job cuts than forecast for September and a rising unemployment. On continuing claims, 400K on unemployment ran out of unemployment payments at the end of Sept, Congress has yet to extend the time frame but will do so shortly. If those that lost their unemployment return continuing claims will increase, we take that into account when analyzing this week’s continuing claims decline.

At 10:00 August wholesale inventories, expected down 1.0% were down 1.3%; July revised to -1.6% frm -1.4%. Sales in August +1.0%; the inventory to sales ratio at 1.20 months from 1.23 months in July. Not any movement on the report.

When is bad news good news? When the US 2009 budget deficit was not nearly as bad as was expected just a few months ago. The 2009 fiscal deficit was $1.4T, a couple of months ago we were hearing close to $1.8T and six months ago $2T. The deficit amounted to 9.9% of total GDP and the largest since WW II (1945).  Total tax revenue fell $420B, 17%, to the lowest level in more than 50 years. Individual income taxes fell by 20%, corporate income taxes dropped by 54%.  Spending increased 18%. About half of the spending increase, $245B, was driven by the costs of bailing out the financial industry and taking over mortgage financiers Fannie Mae and Freddie Mac. The spending increases and tax cuts included in the economic stimulus package approved in February added almost $200B to the 2009.

If you are a Phoenix Homebuyer and need a low interest rate loan, get started here

Searching for a Phoenix foreclosure? Get daily listings, photos and maps HERE

Need Help?  Call the Phoenix Homebuyer HelpLine at (602) 291-4362

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