Seeking Alpha

Giorgio's  Instablog

Send Message
Giorgio is a weekly stock picker who writes about the next weeks best stock picks during the weekend. Giorgio has an undergraduate degree in Economics & International Relations from Lake Forest College, and is currently enrolled at the University of Illinois at Chicago for an MBA.
View Giorgio's Instablogs on:
  • New Home Sales Disappoint Lenders But Reward Prospective Mortgage Applicants

    Peoples Home Equity was disappointed to see new home sales decline -7% in December. This monthly home sales report confirms recent weakness in U.S. real estate.

    As shown on, new home sales for December may have declined from 445,000 in November to 414,000 in December. New home sales have now slid for 2 consecutive months, but today's figure is still the 9th highest reading in 4 years. In addition December sales were 4.5% higher than December 2012. On the whole, sales for 2013 were the highest seen in five years which sheds some positive light on the negative report. Despite today's disappointing release, prospective home buyers will probably gain from this as mortgage rates will have an economic incentive to remain neutral. According to, the initial reaction in the bond market after new home sales were released was an approximate 2 month low in the U.S. 10-year note. Peoples Home Equity thinks prospective home buyers should recognize the recent weakness in interest rates and seize this opportunity to obtain a competitive rate mortgage.

    Today's economic release has raised questions in the market regarding the housing recovery, however, Peoples Home Equity is optimistic and looks forward to February's new home sales report. Since January 2012, new homes sales reports have never been negative for more than 2 months in a row. The lender expects next month to have a higher chance of being positive due to the recent increase in weekly mortgage applications over the past 3 weeks.

    Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300

    Jan 27 3:13 PM | Link | Comment!
  • Peoples Home Equity Awaits New Home Sales

    Peoples Home Equity looks forward to December 2013 new home sales this morning, January 27. In addition the lender is expecting a positive rise in the S&P/Case-Shiller home price index being released on Tuesday, January 28th.

    December new home sales will be reported this morning and the market consensus is expecting a monthly decline of -1.5%. According, if the U.S. Census Bureau actually reports 457,000 new home sales for December, it will be the 4th highest report for the past 5 years. October new home sales were the highest record in the past 5 years. New home sales are vital to continue fueling the rise in U.S. real estate, especially since existing home sales have been lagging. Existing home sales have been lagging since many homeowners are waiting for their home to recover from being under water.

    Housing demand will continue to outweigh real estate inventories unless housing starts advance higher. Thus, it's essential for new home sales need to remain strong so that builders continue having an incentive to construct new homes. Thus, the housing market will benefit greatly if new home sales surprise the upside this morning. If the data is negative there is a pretty good chance mortgage rates may continue lower. In the event that new home sales decline and interest rates decline, market participants may capitalize on this move by going long for a short period of time using ticker symbol SRS (ProShares UltraShort Real Estate).

    Another important release coming up on Tuesday morning will be the S&P/Case-Shiller home price index. The announced index value will be for October 2013 which is will probably confirm a positive percentage change from September. Interest will focused on the Las Vegas and Denver markets as one is still far below its peak high, and the latter has already reach all-time record highs. It is doubtful that mortgage rates would react to this information as it is well in the past.

    In conclusion this week will be constructive for housing market with data being released this morning.

    Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: Giorgio Ferrero is president of The Social Plus Inc, which is responsible for distributing content for Peoples Home Equity.

    Tags: SRS, Real Estate
    Jan 27 1:51 AM | Link | Comment!
  • Lets Talk Charts 8 Review
    We did very well this week in the market: we made a total of 7.7% which is refreshing and self gratifying
    Results are based on a price bought at the close on Friday Feb-4th and sold on Friday Feb-11th
    Feb 12 7:41 PM | Link | Comment!
Full index of posts »
Latest Followers


More »

Latest Comments

Most Commented
  1. Lets talk charts 3 ( Comments)
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.