Industry News
Mortgage Industry News
3Q Consumer Spending Increases
10/29/2010
3Q GDP grew at a 2% annual rate as consumer spending increased the most in four years. According to ForeclosureRadar, home sales have decreased the most in states that have been hardest hit by the real estate downturn, as Arizona, Nevada and California’s trustee sales are down 42%. Zillow states that 7mm houses are currently in the foreclosure process or have already been seized. Right now, the futures market is pricing in an 86% chance that the Fed keeps rates between 0% and 0.25% through January 26th, 2011. Currently, the Ten Year yield is at 2.63% (2.70% yesterday) and the 2-10 yield spread is at 226bps, flattening 4bps since yesterday morning.
