Market Review

 ►A LOOK BACK – Last week the economic news continued to be negative. The Commerce Dept. reported that Dec. Retail Sales dropped more than double the consensus expectation, the Labor Dept. reported that weekly unemployment claims was higher than expected and the Dec. CPI fell sharply. Investors overlooked the negative news and mortgage rates rose late in the week. It is difficult for investors to get excited about purchasing mortgage-backed securities at the current yield with the colossal amounts of new debt being created by Uncle Sam.

►WHAT’S AHEAD – This week the Inauguration Day event will consume the early portion of the week. Investors will listen intently to the inauguration speech to see if president-elect Obama presents a plan that contains viable measures for turning the labor market around and kick-starting the economy. If so the stock market should see a rally and interest rates will be pushed higher. If not, look for a drop in the stock market and lower rates. It is a light week of economic report releases with the Dec. Existing and new Home Sales reports being the major news.

► THERE ARE FUNDS AVAILABLE FOR QUALIFIED HOME BUYERS!!!

► Have a fantastic week!!!

 Greg Burkett

Preferred Home Loan, Ltd.

281/657-0472 x 301 (Office)

713/906-2883 (Cell)

gregb@preferredhl.com

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For more information about real estate issues in Katy or West Houston contact Steve Reddell. He is a licensed REMAX real estate agent in Katy, Texas you can trust. You can contact him directly at 281-994-5173 or visit him on the web at www.katyfamilyhomes.com.

Filed under: Economy/Market, Katy Family Homes