When people do it Ethically and Correctly
They call it being Responsible
When Real Estate Finance Company's do it
Ethically and Correctly, they call it

THE RICHLAND GROUP
www.richlandequity.com
212-681-9888


OUR NEW ADDITTION TO THE WEEKLY MARKET UPDATE
We are proud to now include new Financial data
from Mr. Brad Lipsig SR.VP of UBS




July 16, 2010 -- Mortgage rates fell a bit more this week amidst
lackluster economic news to set yet another record, but failed to drum up
much enthusiasm from would-be borrowers.

Much of the rest of the report contained similar offsetting concepts. With
flight-to-quality panic out of the market for the moment, it's little
wonder that mortgage rates have been directionless.

Fixed-Rate Mortgage Indicator (FRMI) includes rates for conforming, jumbo,
and the GSE's "high-limit" conforming products and so includes a broad
swath of the mortgage-borrowing public. The FRMI closed the week by
falling two basis points, landing at 4.98%. If a long-term fixed-rate
mortgage isn't the best option for you, perhaps you might consider a
hybrid 5/1 ARM, which finished the week at 3.98%.

Yet it seems that the economic slowdown which began in May became more
entrenched in June, as more signs of weak activity accumulate. Conforming
30-year loans shed two basis points from last week to establish the latest
record low, but while low rates have created some new demand for
refinancing, the applications index from the Mortgage Bankers Association
of America stands at levels not seen since 1996 -- and there is little
indication that it will pick itself up off the mat anytime soon. Since the
two home buyer tax credits borrowed from future demand, that's to be
expected during these economic times. If home sales fail to improve -- and
there are no signs that they will -- additional downward pressure on home
prices will be the result. (Will that create Congressional impetus for yet
another tax credit?) Some housing-related data are due next week, and if
recent trends are any guide, they promise to be on the ugly side.

At present, price pressures remain subdued, and with plenty of "resource
slack" in the economy they seem likely to remain that way for at least a
while. June's Producer Price Index (PPI) came in at minus-0.5%, the third
consecutive month of declines. The 'core' figure, which omits its most
volatile components, inched up a scant 0.1%. Over the past 12 months,
headline PPI has climbed by 2.8%, but the core PPI has risen by just 1.1%.
The report also notes that producer prices for 'intermediate' (in
production) goods have weakened, largely due to lower fuel costs. That
could translate to slower price growth down the road.

After moving to match a year's high of minus-41 just a couple of weeks
ago, somewhat darker moods have descended again on the participants of the
ABC News/Washington Post poll of Consumer Comfort. The minus-44 notched
during the week ending July 11 continues a step back from the 2010 high,
itself a still-poor reading. Another popular gauge, the University of
Michigan consumer sentiment index, plummeted to 66.5 in July, down nearly
10 points from June's 76. Given that June represented the highest point in
well over two years, some decline was probably inevitable, but the weak
economy -- particularly unemployment and Congress' inability so far to
extend jobless benefits -- is weighing more heavily on respondents' minds.

With all of the above in mind, we have stepped fully into the Summer
doldrums. While never a period of precise autopilot, activity levels slow
and sizable erratic moves become less common (excepting a market
completely breaking here or there). With June's economic data sporting
largely soft numbers, low mortgage rates should continue to provide
refinancing opportunities and vital support for housing markets. With
demand soft and the factors which serve to create housing demand still
absent, the market can use all the help it can get. While too soon to
know, we tend to think that if home sales fail to improve by Summer's end
to any real degree, we just might see another homebuyer tax credit get
some play.

Over the next week or so, we'll see a slew of housing-related numbers,
including Housing Starts, Building Permits, Builder Sentiment, and of
course new and existing home sales. In the quiet aftermath of the spring
expiry of the last homebuyer tax credit, none of these reports hold much
promise.



Richard J. Russell
President\CEO NMLS # 31133
Richland Equity Resources Corp NMLS #18874
DBA the richland group
551 Fifth Avenue - Suite #1620
New York, New York 10176

Website: www.richlandequity.com
E-mail: mortgage@richlandequity.com

Tel: (212)681-9888
Fax: (212)681-9892