Market Review

 ►A LOOK BACK – Last week the Labor Dept. reported that employers slashed 598,000 jobs in January, which brings the job loss totals to 1.8 million for the last 3 months and 3.6 million since Jan., 2008. Typically we expect interest rates to move lower on bad economic news however rates are being pressured up.

►WHAT’S AHEAD – This week will be a busy week of economic reports, treasury auctions and news on the bank rescue plan. On Tues. Fed Chairman Bernanke speaks to the House Financial Services Committee and on Thurs. The Jan. Retail Sales Report is due. On Tues. Treasury Secretary Geither is expected to announce a new bank rescue plan and all eyes will be on this plan. The Treasury has a 3 part debt offering of $67 billion. Just half of that amount is needed to payoff existing notes and bonds that are set to mature – this will be fairly easy to cover as investors look for a place to reinvest what just matured. The second half may not be as easy to cover since this must attract new capital. Yields are near 50 year lows and risks from the rate cycle and forward-looking inflation prospects are looking to the upside. If yields rise to entice the new money then expect mortgage rates to increase as well.

► 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