Here is a summary of this past weeks (June 25th - June 29th, 2007) economic and financial news for the nation as it may effect the local real estate markets here  in Orange County, CA. 
  • Existing home sales slipped 0.3% in May to an annual rate of 5.99 million, mostly as expected. Though sales are stabilized somewhat right now, swelling inventories combined with tighter credit standards promise to curb demand for housing through the rest of the year.  Similar trends currently exist now in south Orange County.  The rate of sales has held steady, but seeing a rise in inventory levels.
  • Consumer confidence fell to 103.9% in June from 108.5% in May. Despite the drop this month the level of the index suggests that consumers remain fairly optimistic although they rated the present situation lower as expectation for the future declined. Confidence levels face downside risk going forward due to high gas prices, higher interest rates, slumping home prices and sluggish job creation.
  • New home sales fell 1.6% in May to an annualized rate of 915k compared to an expected rate of 925k. Moreover, April sales were downwardly revised to 930k from 981k. Over the past year, new home sales have declined 15.8%. The trend in new home sales has flattened out at a fairly low level in the past several months without expectation of a rebound anytime soon as builders work through excess inventories.
  • The MBA mortgage applications index fell by 3.9% to 618.6% for the week that ended June 22. This was the fourth decline in the past five weeks as higher mortgage rates take their toll on application volumes. Both purchase and refinance activity declined. Nevertheless, mortgage applications in total remain 16.8% above their year ago level.
  • As widely expected, the FOMC opted to hold the target for the fed funds rate steady at 5.25% at their policy meeting today. This was the eighth straight meeting policymakers have left rates alone. Moreover, there were only minimal changes to the post-meeting statement. The Fed recognized moderate economic growth in the first half of this year, thus confirming a rebound in Q2 after a weak first quarter even amidst the ongoing correction in the housing market. The Committee also acknowledged that core inflation improved modestly but want to see more evidence of easing inflationary pressures. They reiterated that the current high level of resource utilization poses an upside risk to inflation. The Fed maintained that inflation continues to be the predominant risk to the economy and that future policy adjustment will remain dependent upon incoming economic data.
  • Mortgage rates eased for the second week in a row as financial markets digested more weak housing market data. New and existing home sales reported earlier in the week showed weakened demand, lower prices and higher inventories. 30-year fixed rate mortgages averaged 6.67% this week compared to 6.69% last week according to Freddie Mac's mortgage market survey.
  • Construction spending increased 0.9% in May, led by a sharp 2.7% increase in the non-residential sector. Residential construction spending remained weak, falling 0.8% in May in its fifteenth straight decline.
If you have any questions regarding mortgage loans for the purchase or refinance of a home or condo here in Orange County, CA., or if you would like a second quote on a Mortgage loan with very low interest rates and low costs, please feel free to call us at:  949-388-3396 or drop us an email at:  Info@SearchOCHomes.com