Financial Markets
The Dow reached its all time high Friday, closing at 16,583. It
seems that record highs will be somewhat of a norm until we see a noticeable
correction. Investors, for the first
Friday in a while, were ok with leaving holdings in stocks despite the
volatility in Eastern Europe. The rally
in stocks resulted in a rally killer in the bond market.
The Fannie Mae 4.0 coupon improved by roughly 100 basis points
over the past two weeks (equivalent to an improvement of roughly .25% in
interest rate to the consumer). The
instrument traded positively in 10 of the past 13 trading sessions, and that
streak ended Friday as the instrument experienced selling pressure. Clients should be looking to lock in the rate
to avoid the eventual correction.
IMO…..(I recently learned that means “In My Opinion”…LOL)
Southern Nevada Real Estate Related Data
Below is an interesting article sourcing Zillow, who states that
The “:breakeven horizon”, or time it takes until owning a home becomes less
expensive than renting one, has dropped to 1.5 years, which is one of the
fastest rates in the nation. This,
despite one of the fastest home value appreciation percentages in the nation,
is due to the rising rent rates in Southern Nevada, according to Zillow.
The median priced home in Southern Nevada dropped 1.5% in April
from the month prior, but up 15% from April 2013. This should not be deemed as all that
concerning as most real estate economists predict a “bobbing along”, and would
expect to see rolling hills (as opposed to jagged cliffs) on its way to 5% annual appreciation.
For more real estate financing information, please visit my
website: http://www.matthewtmaltese.com/home.html
