2. Inflation Expectations Housing Market Home Loan Rate Outlook
Overview…
Economy in General
Stock Market
Labor Market
Inflation Expectations
Housing Market
Home Loan Rate Outlook

3. 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

4. Stock Market Look back at 2010 Corporate earnings
Good sectors for 2011
Outlook for Stocks

5. Stock Market Trend

6. Labor Market Key to housing recovery Why hiring has been lean
Improving trend ahead
But will be a slow climb

7. Recent State Unemployment Rates

8. Nat’l Unemployment Rate Trend

9. Inflation Expectations
Fed wants to create inflation
“Don’t Fight the Fed”
Ocean and Boat analogy
Inflation is
the archenemy of
home loan rates

10. 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

11. 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

12. Home Loan Rates

13. Locking – an analogy

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