Today’s News Synopsis:
The Commerce Department reports personal incomes increased 0.5% in March. Freddie Mac said 30 year mortgage rates dropped to 4.78% last week. Orange County apartment rents rose 1.6% in the first quarter.
In The News:
Los Angeles Times – “Consumer spending, income both rise in March” (4-29-11)
“Personal incomes rose 0.5% last month and consumer spending increased 0.6%, the Commerce Department reported Friday. But after adjusting for inflation, spending rose only 0.2% and after-tax incomes were essentially flat.”
Inman – “Money madness: the economy’s new gold standard” (4-29-11)
“Before rounding them up, a moment for the economy: inbound data are on the weak side. First-quarter U.S. gross domestic product, expected everywhere (until March) to be in excess of 4 percent growth, maybe 5 percent, arrived at 1.8 percent. Net of distortions, probably closer to 2.5 percent, but not going anywhere — certainly not fast enough to absorb labor or houses. Orders for durable goods did rise 1.2 percent in March, with manufacturing continuing as the one bright spot.”
Realty Times – “Mortgage Rates Fall With Latest Economic and Housing Reports” (4-29-11)
“Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), which shows mortgage rates falling for the second consecutive week. The 30-year fixed-rate stands at 4.78 percent; the 15-year fixed at 3.97 percent, the lowest since December 9, 2010.”
Realty Times – “Reasons For Qualifying the Buyer” (4-29-11)
“too many Agents err in judgment by working with lower probability prospects than they should. We often are more willing to work with lower probability prospects because they are all we currently have. We work them in hopes that their motivation, time frame, commitment level, and even financial qualifications will change. This investment in low probability prospects is at best, optimistic thinking and at worst, delusional.”
Orange County Register – “Smaller O.C. apartments get bigger rent hikes” (4-29-11)
“Overall, average first quarter rents at large Orange County complexes ran $1,505 — up 1.6% from 2010′s average rent. If that trend holds, it would mark the first increase in local rents since 2008.”
One year ago, Freddie Mac claimed the average rate for 30-year fixed-rate mortgages was 5.06 percent this week. Zillow estimated that home inventory will increase in the near future. The California Housing Finance Agency proposed a plan to spend $699.6m from the Hardest Hit Fund.
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