Weekly Mortgage Newsletter Week of July 31, 2011 Mortgage Market Commentary
Last week held a big surprise for financial markets. The first estimate of the second quarter’s GDP was thought to have only slowed slightly, from 1.9% to about 1.7%. Unfortunately, the US economy appears to have slowed even more than expected to 1.3%. This moved money out of stock markets, and helped nudge rates downward on Friday. This week could be a very interesting week for financial markets. While the larger-than-expected slowdown in the economy would generally pressure mortgage rates lower, whatever Washington does regarding the debt limit could push rates in any direction. Whether a debt limit extension is reached or not, the more important long term question may be what happens in the case of a downgrade to US debt. While there is no way to know for sure, since it has never happened, most experts believe a downgrade would pressure all interest rates upward, including mortgage rates. However, since it is a completely new situation, no one knows for sure how this week will play out.
2011’s Cities That Are The Best Values According to Kiplinger’s Personal Finance magazine, a number of Midwest and Southern cities boast great values. The researchers used each city’s unemployment rate, median household income, cost-of-living index, and other factors to generate the list. The top-10 cities are Omaha, NE, Charlotte, NC, Nashville, TN, Colorado Springs, CO, Knoxville, TN, Lexington, KY, Little Rock, AR, Wichita, KS, Cedar Rapids, IA, and Cincinnati, OH.
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