Wells Fargo Projects $3 Billion Profit in 1st Quarter 2009
Once the markets have a chance to rinse out the weak businesses, the strong will survive bigger and more powerful than ever before in any industry or profession. This is exemplified when Wells Fargo announced that they are forecasting all time record profits. Similar to the dot.com bubble in the 1990′s, the strong businesses will survive while weak companies will disappear. US banking giant Wells Fargo projected Thursday a “record” three-billion-dollar profit in the first quarter, sparking hopes of recovery from a financial crisis that is battering the economy. The bank said “it expects to report record net income of approximately three billion dollars for first quarter 2009,” thanks in part to a stronger than anticipated performance by its new unit Wachovia. Our business momentum is strong, and we expect our operating margins to remain at the top of our peer group,” said Wells Fargo chief executive John Stumpf.
Is this the Right Time to Buy ???
This is the information released by a recent Realtor magazine article. Intelligent Buyers realize this may be a once a generation opportunity to get a great deal. More than three-quarters (78%) of potential first time homebuyers say that now is a good time to buy a home, despite widespread concern about the economy…85% of First Time Homebuyers say the reason they are considering buying now includes:
Homes are More Affordable
Interest Rates are Low
$8,000 Tax Credit Money is a Huge Incentive
iPhone Dominates Mobile Web
In only two years, the iPhone has dramatically transformed the mobile web. There’s a tendency toward touchscreen devices for mobile web browsing; the iPhone has already claimed 50% of mobile web traffic. Google’s Android OS was the only other platform gaining with 5%.
Sadly, Palm continues its downward spiral. Scott needs something more modern and respectable – a BlackBerry, perhaps. Someone please pick him up off the floor!
[AdMob via mocoNews.net]
Mortgage Applications Up Over 30% Last Week
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32.2% to 1,159.4 for the week ended March 20. Refinancing accounted for 78.5% of all applications. Although overall applications went up so much, nearly 80% of the applications were for refinancing and really is not directly sales. However the good news is that while homeowners are able to get lower interest rates, they will free up some more cash for other spending. This may lead to property owners with significant equity, drawing on some of that untapped equity and leveraging it to buy investment homes, or turn their current home into a rental home while buying a new principal residence. Low FIXED rates will not be here forever, homeowners should take advantage of them while they can.
New-Home Sales Jump 4.7 Percent
New home sales rebounded unexpectedly last month, but were still the second-worst on record and remained well below last year’s levels, according to data released Wednesday 3/25/09. The Commerce Department said sales rose 4.7 percent in February to a seasonally adjusted annual rate of 337,000 from an upwardly revised January figure of 322,000. Even after the revision to January’s sales results, the month remained the worst on records dating back to 1963. Nobody knows where the bottom or top of anything actually is until we are beyond it. However when sales begin to increase from very low levels, that can be a sign that we may have hit bottom. Time will tell where we actually bottomed out and every local market is different, however the signs are there that we may be at or close to the turning point.
Home Prices Rose from December 2008 to January 2009
Stock Market Rallies Almost 500 Points….
The stock market took off today based on some good news from the housing sector and the government’s bank plan to take bad debt of the banks’ books. February Existing Home Sales rose 5% to 4.72 million annual units, above the consensus forecast of 4.45 million annual units. Inventories of unsold homes were at a 9.7-month supply, about the same as last month. 45% of the home sales were foreclosures or other distressed properties. The DOW showed the largest single percentage gain today since October 2008. Many analysts now believe that we may have hit bottom and are in for a rally. Hopefully this will help regain some of the lost wealth and increase consumer confidence across the board.
Treasury Plan Could Cost $1 Trillion
In an effort to continue to make money flow easier and quicker, the Obama administration’s latest attempt to tackle the banking crisis and get loans flowing to families and businesses will create a new government entity, the Public-Private Investment Program, to help purchase as much as $1 trillion in toxic assets on banks’ books. The new effort, to be unveiled Monday, will be followed the next day with release of the administration’s broad framework for overhauling the financial system to ensure that the current crisis — the worst in seven decades — is not repeated. A key part of that regulatory framework will give the government new resolution authority to take over troubled institutions that would pose a threat to the entire financial system if they failed. This move should help in the short term, but all of these spending programs are creating a HUGE debt service on our future. We are running the risk of not just inflation down the road, but hyper inflation. This is the best time to lock a loan for 30 years no questions asked.
In-flight Wi-Fi Impressive
I recently had the opportunity to fly Virgin America. They’ve got in flight Wi-Fi on most of their aircraft. It worked remarkably well – even the bandwidth was pretty impressive:
Information from Wells Fargo – Home Affordability and Stability Bill
This link will provide you and your clients with information from Wells Fargo in reference to the Home Affordability and Stability Details that are going to be released today. Every loan company will handle this program in their own way. However since Wells Fargo is one of the largest in the country, this should be helpful.
https://www.wellsfargo.com/jump/homeassist
