Tiffini’s blog Cinco de Mayo 2008

I’m hoping that this week will be easy for us as far as news and interest rates go.  It couldn’t be anything like last week.  Last week was huge.  Everyone was on the edge of their seats to see what the Feds would do on Wednesday.  And the result was giving the markets what they wanted, which was another .250% cut.  But, the Fed signaled that they probably weren’t going to give the markets any more candy.

Thursday we got to see the Fed’s favorite inflation gauge (Personal Consumption) report a 2.1% increase.  The Fed likes to see inflation stay under 2%.  So here is more evidence that rates are going to go up to combat inflation in the near future.  Jobless claims were also reported, but so far are not as bad as some “experts” were predicting. 

The writing is all over the walls.  Rates have to go up soon to fight inflation.  We will see a 10 yr note auction and a pending home sales index report on Wednesday. 

In my opinion, the next couple of weeks will be the best time to sign contracts for Reno Nevada new home purchases.  For two reasons: One, rates are still at record lows.  The Reno jumbo market is easing back in the water.  Two, have you seen these Renoprices?

In last month’s notes, I mentioned that we were just waiting for the “bottom feeders” to show up and take out the surplus inventory.  This is happening.  So we can expect home prices to stabilize.  After that, I would be very surprised if we didn’t see a bounce. 

Sincerely,

Tiffini R. Anderson

CTX Mortgage Company

6900 S. McCarran Blvd. Suite 2020

Reno, NV  89509

Cell 775-843-7758  Direct 775-448-9722

Toll Free 800-829-8505

Office 775-829-8555   Fax 775-829-8558

tiffini.anderson@ctxmort.com

www.ctxloanofficer.com/tiffini.anderson

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