Daily Market Commentary for August 11, 2011

Are the markets poised to bounce off the bottom?
(read more at Millennium-Traders.Com)
http://www.millennium-traders.com/news/newscommentary.aspx

Gold on the other hand, took a dive. A potential reason for the fall, the CME Group which owns the main U.S. exchanges for metals, grains, and energy, raised margin requirements for gold trading effective today, which prompted investors who were either unwilling or unable to put up more money, to sell their holdings in the precious metal. Per the CME, initial margin requirements to trade gold rose to $7,425 per 100-ounce contract from $6,075 and maintenance margins increased to $5,500 from $4,500. The move comes after CME margin increases, during May, for silver futures created quite a stir in the metals markets. The move brought losses upon all commodities futures as investors who could not meet the new silver margin requirements, liquidated positions, dragging prices sharply lower. During the first week of May, silver suffered its worst five trading days in more than 30 years.

Per Freddie Mac’s chief economist, mortgage rates hit fresh new lows this week, as worries about European debt markets drove investors to U.S. Treasurys. According to Freddie Mac’s weekly survey of conforming mortgage rates, rates on 30-year fixed-rate mortgages averaged 4.32% for the week ending August 11, striking the lowest rate seen so far, during 2011. A year ago, mortgage averaged 4.44%. Many home owners are opting to have their homes reassessed in attempt to reduce their real estate tax burdens. Interested home owners may consider some of the following ideas to get started: contact your local county tax assessment office; take a look at homes that have sold in your neighborhood to help build your case to reduce your assessment and finally, possibly talk to a professional before you move forward on the idea to see what it is actually going to take to appeal your assessment versus what you would be saving, if assessment is reduced.

As the economy may be holding steady, is now the time for potential house buyers to look further off the beaten path for that perfect deal? With mortgage rates at historic lows, home buyers are making their move now - rates won't remain this low forever and we all know that. Many small rural towns across the country have many for sale signs just as bigger cities do. Home owners in rural areas, trying to sell their homes, are more likely to move more quickly to put a deal together to sell their home since income levels in rural areas are generally much lower than city-slicker wages and current home owners looking to sell, are anxious to see SOLD on the sign in their yard. Potential new home buyers are found searching areas that have more to offer than just the perfect beautiful home tucked away in a rural area such as, peace and tranquility, low crime rate, good school systems, shopping nearby, spectacular country setting and even resorts not too far away that may offer a resorts that offer skiing or snow boarding for the family to enjoy during those long winter seasons found in the Northeastern part of the USA, for example. Home owners are coming up with more creative ways to attract potential buyers. While the market remains flooded with foreclosed properties that potential buyers know will need repairs, there remains plenty turn-key, ready to move in beautiful homes nestled away in rural communities, just waiting for a new owner to take control. Available home buyers are starting to make their move to avoid missing out on the perfect deal, at the perfect location which may consist of, country living at its finest.

An increase of home buyers will be huge step toward a recovery of our economy. The action is expected to alleviate overwhelming debt for many, current home owners who need to reduce their living expenses. The National Association of Realtors’ affordability index indicates that over the past three quarters, homes have been more affordable than any other time since the group began keeping the index in 1970.


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