Weekly Comments

Financial Markets
Stocks continue to climb this week, as the Dow gained another 100 pts in 4 days of trading.  Mortgage bonds continue to be sold, resulting in mortgage rates inching up.  In many instances, 30 yr fixed mortgage products require the buyer paying points in order to lock in at an interest rate south of 5%.  The weekly Jobless Claims Report was the primary catalyst for the stock market gain, as much of the week’s gains occurred after the report announced.  The weekly jobless claims dropped by 37,000 to 404,000, which was 20,000 less claims than expected.     


Local Economy and Real Estate Market
The Building Jobs Coalition has a proposed a program to the Nevada state legislature that would generate up to 27,000 jobs over the next two years, and over 100,000 a number of years later.  The program would be funded by minor increases in taxes.  Applied Analysis head Jeremy Aguero staunchly supports the plan and feels that it has a chance to become a reality.  The funds would go to various public works projects such as construction of roads, schools, and other government facilities. 
http://www.lasvegassun.com/news/2011/jan/20/construction-industry-raise-taxes-jobs/

Below is an article from the RJ that summarizes home sales in Southern Nevada for 2010.  In total, just over 48,000 home sales occurred, with 5,341 of those sales belonging to new homes. 
http://www.lvrj.com/business/las-vegas-new-home-sales-up-in-2010-resales-down-113916814.html

Program Change 

·   Primary Residential Mortgage will be rolling out its FHA program for buyers with less than a 620 FICO score in the next 30 days

·   We now offer 90% financing for buyers purchasing a 2^nd home

Primary Residential Mortgage continues to strive towards offering true agency guidelines, which enables its loan officers to assist home buyers that are getting declined by other lenders with extraordinarily conservative "overlays".