Consumer sentiment at six-month low
Posted June 15, 2012
Weak economic data continues to provide a drag on the U.s. economy. Thursday’s weaker-than-expected jobless claims number, coupled with Friday’s consumer centiment drop helped to push the 10-year yield back below the 1.60 threshold to a yield of 1.58 percent by noon Friday.
The jobless claims report from Thursday saw a jump in claims to 386,000. That was the fifth increase in claims that we’ve seen over the past six weeks.
The June Consumer Sentiment Report fell short of economists’ expectations and was weaker in part over labor market concerns from consumers.
U.S. headwinds coupled with the European debt mess has given the Fed quite a bit to ponder at their next meeting on Tuesday and Wednesday. Speculation is fueling rumors that we’ll have some directive relating to QE3 on Wednesday. However, many are also thinking that we won’t experience an easing move until later this summer or early fall.
Mortgage rates continue to be extremely attractive, giving those Triangle home buyers and homeowners plenty to cheer about in housing.
Speaking of Triangle Housing, I have some updated data to share with you for May. New numbers out from the Triangle Multiple Listing Service (TMLS) indicated significant gains in year over data for closed sales. As a region we’re up 26 percent. Sub-regions like North Raleigh saw gains of 66 percent, and South Durham was up 62 percent. Inventories decreased by 28 percent for the same year-over-year period. These fundamentals are lining up nicely for a successful second half of 2012 in Triangle housing!