Inflation Expectations Housing Market Home Loan Rate Outlook Overview… Economy in General Stock Market Labor Market Inflation Expectations Housing Market Home Loan Rate Outlook
Economy in General Overall GDP improving in 2010, will continue for 2011 Quantitative Easing 2 (QE2) & Tax Package US Dollar weakening All this = uptrend in Rates during 2011
Stock Market Look back at 2010 Corporate earnings Good sectors for 2011 Outlook for Stocks
Stock Market Trend
Labor Market Key to housing recovery Why hiring has been lean Improving trend ahead But will be a slow climb
Recent State Unemployment Rates
Nat’l Unemployment Rate Trend
Inflation Expectations Fed wants to create inflation “Don’t Fight the Fed” Ocean and Boat analogy Inflation is the archenemy of home loan rates
Housing Strength of local housing market will depend on local labor market Purchase backlog Foreclosure inventory Home prices and home loan rates will be on the way up during 2011 Homebuyers should not wait
Home Loan Rate Outlook Will gradually inch higher over 2011 But won’t be in a straight line And…2011 will be third best year on record, just behind 2009 and 2010
Home Loan Rates
Locking – an analogy
14