NEW YORK (TheStreet) -- Thirty-year fixed mortgage rates are down a bit this week, to just under 4.70%, according to the BankingMyWay Weekly Mortgage Rate Tracker, but the long-term mortgage trend is on the upside, and it could be just a matter of time before average 30-year rates rise to 5%.
Indeed, some mortgage brokers tell BankingMyWay they're already seeing regular rates north of the 5% mark, which should raise eyebrows for both homebuyers and sellers. [Read: Why the Housing Recovery Doesn't Matter for Millions of Us ]
The National Association of Realtors says higher rate are the primary reason home sales have slowed lately. Its monthly Pending Home Sales Index says the 1.3% decline in U.S. residential home deals in July were "because of higher mortgage rates slowing the market."
That's particularly true in the U.S. Northeast and West, where home prices are growing, the NAR reports. "The modest decline in sales is not yet concerning, and contract activity remains elevated, with the South and Midwest showing no measurable slowdown," says Lawrence Yun, chief economist at the NAR. "However, higher mortgage interest rates and rising home prices are impacting monthly contract activity in the high-cost regions of the Northeast and the West." "More homes clearly need to be built in the West to relieve price pressure, or the region could soon face pronounced affordability problems," he says. Other real estate professionals agree, noting that whether you're a buyer or a seller, now may be time to get into the market. [Read: Report: 8.3M Homeowners Will Be Overwater, Able to Sell in 15 Months ] "Homebuyers shouldn't let this year's increase in interest rates drive them out of the market," says Rick Allen, chief financial officer at MortgageMarvel.com, a mortgage shopping marketplace. "Rates on a 30-year fixed mortgage are around 4.5% with zero points down right now. This is close to where they were roughly two years ago, and at that time, people were thrilled with the rates. No one knows the direction of rates for sure, but today's rates remain very favorable for mortgage refinancing."
Allen also sees the inventory issue much like Yun does -- as good news for home sellers, who don't have a lot of competition as the summer selling season draws to a close.
"Those looking to sell shouldn't hesitate to list their homes if they have equity," he says. "There's still a shortage of properties for sale in any markets, and new home building remains modest. Sellers should be able to get a favorable offer relatively quickly in most markets."
Allen notes the inventory for U.S. home sales remains fairly flat, and that the new supply of homes for sale stands at roughly 2.22 million, a low number for a healthy residential real estate market. He adds that while home building is coming back, the supply of housing for sale is not likely to grow much unless building grows by another 50% over current levels.
In this environment, it's tough to tell homebuyers to sit tight and wait for mortgage rates to drop. The likelihood is they won't. [Read: Can You Handle Selling a Home By Yourself?] But with good homes at a premium right now, buying a dream property means doing tons of research, talking to plenty of lenders and making sure your credit rating is pristine -- and stays that way for the next few months. If you can manage that, chances are you can still get a decent home at a decent price and at a decent mortgage rate. These days, that's about all you can ask for.
Eric Nelson of Servo Wealth Management goes through the grim numbers in his July newsletter to clients.
Seth Wenig/APCEO Nick Woodman holds a GoPro camera in his mouth as he celebrates his GoPro's IPO. There were plenty of winners and losers this week, as the leading premium coffeehouse chain expanded its carbonated beverage offerings, and a disruptive video-streaming service got disrupted itself. Here's a rundown of the week's best and worst. GoPro (GPRO) -- Winner The initial public offering market got some fresh meat on Thursday when GoPro went public. The company behind the popular namesake cameras that extreme sports enthusiast like to wear was a hit. It priced at $24 a share -- at the high end of its initial range -- and that still wasn't enough. The stock opened at $28.65, closing out its first day of trading with a 31 percent gain. GoPro's growth has been stellar. Sales soared 87 percent last year to nearly hit $1 billion. However, there was a surprising decline in revenue during this year's first quarter. New GoPro investors are assuming that the most recent quarter's dip was a fluke. If it isn't a fluke, they can record their stumble in glorious high-def. Aereo -- Loser Sometimes it's the disruptor that gets disrupted. Aereo, the start-up service that offers local TV channels as a streaming platform, was pummeled by the U.S. Supreme Court. In a 6-3 decision, the court ruled that Aereo violated the copyrights of major TV networks by streaming their content without paying transmission fees. The move isn't the end for Aereo, but its prognosis has clearly deteriorated. Aereo thought that incorporating tiny remote antennas that subscribers can access online was similar enough to actual HD antenna ownership by individuals that its business model would be found to be legal. That didn't pan out, and consumers are unlikely to get a break this way from their ever-increasing cable and satellite TV bills. Starbucks (SBUX) -- Winner If you need to cool down in the Sun Belt, Starbucks has a few fizzy options. The java giant this week introduced its Fizzio line of carbonated beverages at 3,000 of its stores in the South. Fizzio is a line of handcrafted sodas that launched with three flavors (root beer, ginger ale and lemon ale), at 100 calories or less for 16 ounces. (Half as many calories as a Pepsi, and with cane sugar as the sweetener.) Starbucks is also letting customers pay 50 cents to have their iced teas and Refreshers beverages carbonated with the Fizzio machine. It's a smart call, giving non-coffee drinkers a new reason to walk into Starbucks. Steelcase (SCS) -- Loser Office furniture sales can be a good proxy by which to gauge the state of corporate America, but investors better hope that Steelcase is the exception.
) offers a dividend yield of 3.32% based on Wednesday's closing price of $50.63 and the company's quarterly dividend payout of 42 cents. The stock is down 2.6% year-to-date. Dividend.com currently rates ABBV as “Recommended” with a DARS™ rating of 3.5 stars out of 5 stars.
In the latest of several reports indicating improvement, the European Commission recently said that its Economic Sentiment Indicator for the euro zone moved into positive territory this month for the first time in more than two years.
Commercial space travel just a year away 
Dollar Could Put in for a Natural Rebound or Explosive RallyFundamental Forecast for US Dollar: BullishA range of Fed officials stay out of the way of the September Taper timetable US Treasury auctions show a slow rebound in foreign interest, but total demand weakening A strong showing in US service sector activity and trade reinforces growth, Taper outlook Over the past week, the Dow Jones FXCM Dollar Index (ticker = USDollar) suffered its worst weekly decline since December 2011 and its longest string of daily losses since December 2010. Taken without context, that is a strong bearish sign. However, when we consider the fundamental and technical backdrop; this situation looks like a launching point for a dollar rally. The question is whether it will be a mild, natural correction or an explosive rally with genuine trend generation. That outcome will be determined by the progress found on the market’s primary fundamental concerns: the market’s appetite for risk and speculation surrounding the Fed’s ‘Taper’.To understand where the dollar will move heading forward, we have to establish the conditions under which it has arrived at its current position. The slide through this past week was extraordinary for both its consistency and intensity. Yet, the slide evolved without the burden of the benchmark currency’s primary fundamental themes. Looking for evidence of a rebound in risk appetite; the speculative-favorite S&P 500 meandered – trading on the lowest non-holiday volume since the September 2011 terrorist attack – while other measures of sentiment similarly floundered. As for Taper premiums, both speeches by Fed officials’ speeches and data on the eco! nomic docket reinforced the probability of a September move by the central bank.Without conviction, the kind of move that we have seen this past week would more appropriately be labeled a ‘natural correction’. Though, traders know that such moves are temporary in nature without a strong shift in conviction and participation to change the underlying current. A simple look at market momentum, we find both the 100 and 200-day simple moving averages are below spot and rising steadily. So long as the systemic conditions behind the capital markets and investor sentiment don’t change, a return to trend for the greenback grows more likely with each day. Yet, the force of that transition depends on the accelerants available to facilitate it.The first thing we have to notice, is that the economic docket does not carry the kind of event risk that we would expect to definitively wipe out risk trends nor verify the September time frame for the Fed’s first reduction in its stimulus program. It is difficult to determine what known event risk short of the next FOMC rate decision (on September 18th) can carry enough influence to upset the current equilibrium. This past week, remarkably strong numbers for US trade and service-sector activity reinforced the more dubious – but positive – 2Q GDP and employment figures from the previous week. Furthermore, the Fed speeches from the period – particularly extreme dove Charles Evans – were clearly shaped to avoid contradicting expectations of a September start for the stimulus wind down. Yet, despite this combination, confidence in stimulus-backed speculative-position held fast. In the week ahead, we have another round of contributory data to the stimulus debate as well as central bank talks on tap; but these listings don’t seem to be any more convincing than what we have recently priced in. On Tuesday, non-voting Atlanta Fed President Dennis Lockhart (a hawk on QE) will speak on the economy, while voter St. Louis Fed Preside! nt James ! Bullard (a QE dove) is set to speak on monetary policy on Wednesday and the economy Thursday. For data, retail sales, the consumer price index and University of Michigan consumer sentiment survey are all notable.If this list of indicators and speeches can’t generate an explicit shift in risk trends, the natural ebb and flow will guide the dollar. Given the hefty move by the benchmark currency this past week despite the lack of drive, a rebound is likely. Yet, its potency and follow through will be questionable. Alternatively, should there be an innate shift in sentiment, the greenback can quickly return to its role as the market’s preferred reserve currency – for better or worse – and pitch into a serious trend.Looking at the backdrop for capital markets beyond S&P 500’s record highs, conditions looks highly suspect. This past week, volume on the S&P 500 was the lowest seen on a non-holiday period since the markets were closed after the September 2001 terrorist attacks in New York – an extension of a steady trend. Leverage used at the NYSE has moved to record highs. Exposure to exceptionally risky assets has grown. Retail interest in riskier assets has ramped up while ‘professional’ exposure has fled at the fastest pace in years. Meanwhile, volatility indicators show extreme complacency while rates of return are near record lows… - JKWritten by: John Kicklighter, Chief StrategistSign up for John’s email distribution list, here.original source