Financial Markets
Last week the Dow Jones essentially recovered its losses before the catastrophic earthquake in Japan and escalated violence in the Middle East. The Dow started the week at 11,858 and ended at 12,250, a nearly 400 pt gain. Towards the end of the week, the GDP (Gross Domestic Product) numbers were released and pleasantly surprised traders. It showed that the 4th quarter of 2010 grew at a pace of 3.1%, which beat forecasters’ predictions of 2.8% growth. This is a good indication that the economy has continued to grow which is why stocks
Bonds sold off in typical fashion as trader’s concerns about the world events ease and decide to look for more fruitful rates of returns in the stock market. Mortgage rates went up nearly .25% for the week, which matches the sizable shift in stock prices.
Local Economy and Real Estate Market
The article below discusses the strengthening resale market in Southern Nevada and improving 90 day delinquency rates.
Below is an interesting article about the proposed road construction projects for Southern Nevada. Jacob Snow, the director of transportation and commission is quoted as saying that there are 10 billion dollars in road projects that are in the pipleline. The Federal Highway Administration estimates that for every billion dollars spent on road construction, and estimated 27,800 jobs are created.
Important Reminders:
- FHA increases the monthly mortgage insurance premiums from .9% to 1.25% all case numbers pulled on or after April 18th.
- PRMI now allows for FHA financing on “flipped” properties with greater than 20% appreciation in less than 90 days.
- PRMI also is rolling out Home Path for investors by the end of the month
