MORTGAGE RATE COMMENTARY

Milwaukee Housing Market Recovery?????

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Mortgage Backed Securities are PLUS 6bps this morning.

Equity markets are firmly in positive territory today. The long weekend and negative news from Europe was not enough to push markets lower. The markets seem to be putting a great deal of weight into the Empire Manufacturing Data. That report shows that manufacturing in that region is at its highest level since April. Mortgage Backed Securities are doing well thanks to the Fed purchase program.

I was reading an article on housing from marketwatch.com and here are some of the highlights.

Economists will also look to see if the depressed U.S. housing market shows further signs of emerging from its worst downturn in modern times. Economists at Deutsche Bank argue the sector might give growth more pop in 2012 than most expect.

“We wonder if forecasters have counted this sector out for so long that they are overlooking the possibility that it could pose an unexpected mild boost to the economic outlook in the year ahead,” Deutsche Bank said. “Judging from the new and existing home sales data, we believe that the housing sector is now in recovery mode.”

I have been watching the housing market. It appears that there are less homes available in the areas I have been watching. I have read articles that would suggest that another round of foreclosures could be forthcoming. I will curb my enthusiasm until the spring buying season approaches. With interest rates at historic lows and pricing still favoring the buyer, it looks like a great time to purchase a home.