Traveling the world without leaving Disneyland!

Last week I went to Disneyland, as part of my “staycation.” Although I have season passes, every trip is a blast. I guess that’s the kid in me.

My all-time favorite ride at California Adventure is the “Soaring” ride, where you soar over different parts of the world, while safely sitting in your seat. I wish that ride would be much longer, as I want to experience more and more! Have you been on that ride? If not, you must go!

It reminds me of how vast this world is- how complex, yet how simple. The breathtaking views and countless places to visit make me hungry for more. I’m not particularly fond of flying, but I think I need to push past this discomfort and see more of our beautiful earth!

Happy Father’s Day to all you Dad’s! I hope you have a wonderful day, surrounded by those you love!

Onto the market update…

I remember a time that the stock market would go wild in the days leading up to a Fed announcement about interest rates. This week at the FOMC meeting, the Fed raised interest rates by ¼ percent.  The announcement came out on Wednesday afternoon at 3:15PM, and investors reacted with little more than a yawn.  The stock market ticked up about 80 points in the last 45 minutes of the trading day.  By historical standards over the last 2 years, this movement in the market was equivalent to virtually no reaction.  The interest rate increase by the Fed was expected by investors.  The Fed has indicated that based upon current economic conditions and growth patterns, one additional rate increase is anticipated before the end of 2017.

For the first half of 2017, the housing market has been very active. Recent surveys of real estate and mortgage professionals around the country have indicated that in many parts of the country, the typical summer slow-down might be taking hold.  The housing market remains quite active, however activity has seemed to tail off slightly in many areas.

Builder sentiment reflects the recent slight slowdown in activity. The latest housing market index, which measures builder optimism, showed a slight drop from 69 to 67.  Overall, the index remains very strong so by no means is this slight drop indicative of future problems for housing.  In fact, the housing market index for future sales rose to an unusually high level of 76.

There have been more and more articles in recent weeks in which housing experts are discussing the possibility of an abnormally active Fall market. It appears that homeowners are recognizing the growth in their home equity that has taken place in the last 24 months.  Some homeowners are beginning to believe that it might be time to “take the money and run”.

In many markets around the country, more homes have come up for sale in the last 30 days. This has not necessarily translated into more inventory as homes are still selling as fast as they are listed because of all the pent-up demand.  An increase in home listing in the month of June is NOT a common occurrence.  Typically, new listings tend to decline in the summer months as schools let out and more families take their summer vacations.

Mortgage rates decline, and refinance applications tick up. For the week ending June 9th, applications for refinancing jumped 9.0 percent according to the Mortgage Bankers Association.  Purchase applications declined by a seasonally adjusted 3.0 percent.  The Memorial Day Holiday likely played a role in the slight drop for the week.

Next week there are very few reports that might influence investor decisions. Expect the stock market to remain relatively flat unless some geopolitical events impact the United States.  Next week’s potential market moving reports are:

  • Wednesday June 21st – MBA Mortgage Applications, Existing Home Sales
  • Thursday June 22nd – First Time Jobless Claims, FHFA House Price Index
  • Friday June 23rd – New Home Sales

 

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can.  Please feel free to reach me at 661-618-1789.

 

 

Thank you!

I want to extend a heartfelt thank you for those that came to my book signing last night! It meant a lot to me to have you here, and I appreciate you taking the time out of your busy day to stop by. I hope you enjoy the book and find it inspiring and helpful. Again, thank you!

I also want to extend a very Happy Mother’s Day to all you Mom’s! I hope you are pampered and loved every day of the year, but especially on this special day!

Have a wonderful weekend!

Onto the market update…

A week with few surprises on the economic front had some investors making the decision to cash out their profits from the recent stock market rally. With the Dow Jones Industrial Average poised to finish the week down around 200 points, it seems that the major driver of the decline was more profit taking than anything else.

The only data related on housing this week was the Mortgage Bankers Association report on mortgage loan applications. Purchase apps for the week ending May 5th increased 2.0 percent. This follows last week’s increase of 4.0 percent. Home purchase activity continues to remain extremely high in almost every major market in the country. The shortage of home inventory is what appears to be the only thing holding back the purchase numbers from soaring as demand for housing remains at a post-recession high. Applications for refinances also increased by 2.0 percent. Overall, refi activity is approximately 40 percent behind the same time last year.

The report on Job Openings and Labor Turnover (JOLTS) shows there are plenty of help-wanted signs to be seen, however there appears to be a limited number of qualified applicants to fill these open positions. With unemployment at one of the lowest points in history, it is becoming harder and harder for employers to attract the right talent. More employees are changing companies than in recent past as confidence in the economy continues to slowly improve. However, with unemployment so low, the cost to employers to attract qualified talent is increasing.

First time jobless claims remain at historical lows with the latest report showing only 236,000 claims were filed last week. 300,000 is considered the benchmark number as to where concerns around the job market might appear. The low numbers of claims validates the JOLTS report as to why employers are struggling to find the right talent to fill their open positions.

While March was an unusually weak month for inflation, April appears to be showing the exact opposite. The Producer Price Index rose a higher than expected 0.5 percent. Analysts were expecting only a 0.3 percent increase in wholesale prices. When you exclude the volatile food and energy sectors, prices rose 0.4 percent which places wholesale inflation on an annual rate of just under 5.0 percent. The likelihood of this number remaining at this level is extremely low, however it is important to note that this is one of the highest readings on wholesale price increases since 2007. A factor in the price growth is related to the recent Fed increase in interest rates.

Finally, consumer confidence readings are beginning to move back from their highs. The consumer comfort index remains very strong at a reading of 49.7, however this is a decline of 1.2 points from the previous month. Confidence continues to point to strength in employment.
Next week’s potential market moving reports are:

 

  • Monday May 15th – Housing Market Index
  • Tuesday May 16th – Housing Starts, Industrial Production
  • Wednesday May 17th – MBA Applications
  • Thursday May 18th – First Time Jobless Claims, Leading Economic Indicators
  • Friday May 19th – St. Louis Fed Reserve Bank President Speaks

 

As your trusted mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at 661-618-1789.

 

Did you mark your calendars? Next Thursday, May 11th, is my book signing at the American Family Funding offices! The first 50 guests will receive a free copy of my book, so be sure and come early! The fun is from 5:00-7:00 pm. I would love to see you and give you a free copy!

On another note, I was recently interviewed by The Signal, our local newspaper. Here’s a link to the online version. Enjoy the read. 😊

Happy Cinco de Mayo! Enjoy your weekend and stay safe!

Onto the market update…

Another week, and once again uneventful events happening on Wall Street. The Dow Jones Industrial Average traded within 100 points plus or minus almost the entire week. The biggest news for the week was the ability for Congress to pass the spending bill and avoid a government shutdown. Other than this agreement, it is clearer with each passing day that Democrats and Republicans could not be further apart on everything else in running this country.

The awaited release of the FOMC Announcement from their meeting this week arrived with little more than a thud on Wednesday. The Fed continues to remain upbeat regarding growth in the economy, however they do acknowledge that some of the fundamentals in the economy are showing slight signs of weakness. There was nothing in the Fed’s report that gave investors reason to feel they may be changing course on the anticipated rate increases likely to happen later in the year.

One of the areas that has showed signs of slowing is manufacturing. The latest index for the Institute For Supply Manufacturing (ISM Mfg Index) declined for the first time after 7 straight months of beating expectations. Not only did it fall short, it was hit much harder than anyone expected. However, although the index did not meet expectations for April, the report standing on its own is quite solid with a reading of 54.8. Any reading above 50 is considered very strong.

April’s ISM Non-Manufacturing Index showed significant acceleration. New orders outside of manufacturing jumped 4.3 points all the way up to 63.2. This is the highest level in almost 12 years. Not only does this report reflect strong orders currently, there is a significant growth in backorders which means that this sector should remain solid for the coming months.

With mortgage rates not moving much in either direction, applications for refinances declined by 5.0 percent for the week ending April 28th. The home purchase market continues to remain red hot as indicated by the MBA’s report of an increase last week of 4.0 percent in purchase loan applications.

Many areas of the country continue to report that bidding wars are taking place on many homes coming on the market for sale. This is leading to frustration by some prospective buyers. Some are making a decision to step out of the market for a while to let things settle down. The frustration of not being able to get an accepted offer on a property is taking its toll on some of them. The good news is that reports from real estate professionals indicate that in many areas, more homes are starting to come on the market. It appears that homeowners are wanting to take advantage of the hot market. The demand is still much higher than inventory so don’t expect the bidding wars to end anytime soon.

Next week is going to be quiet as far as economic reports that may impact the market.

 

  • Monday May 8th – Labor Market Index
  • Tuesday May 9th – JOLTS Report
  • Wednesday May 10th – MBA Mortgage Applications Data
  • Thursday May 11th – First time Jobless Claims, Producer Price Index
  • Friday May 12th – Retail Sales, Consumer Price Index

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at 661-618-1789.

 

http://pattihandy.com/clients/812

Home and Garden show this weekend!

If you live anywhere near the Santa Clarita Valley, come to the Home and Garden Show this weekend! It’s tons of fun, with food trucks, everything for your home and garden, and I’ll be there! It’s at Central Park with lots of parking and it’s free! If you need directions, let me know.

I’ll be at booth 203 with our American Family Funding team. I’m working the booth on Saturday from 2:00-4:00 and Sunday from 10:00-12:00. Please come by and say hi, I’d love to see you!!

Don’t forget about my book signing event on May 11th at the American Family Funding offices. A complimentary book will be given to the first 50 guests, so be sure and come early!! 5:00-7:00 PM, with wine and treats being served!

Onto the market update…

Housing data dominated the market data being released.  Tuesday launched the housing news with the Federal Housing Finance Agency report on home prices.  For the month of February, home prices increased 0.8 percent.  This was double the amount the majority of analyst’s predicted.  Adding to the positive news was January’s numbers- revised from being flat, to showing an increase of 0.2 percent.  Overall, home prices are up 6.4 percent from the same time last year.

Following the FHFA report, S&P Corelogic Case-Shiller HPI showed an increase in home prices by 0.7 percent for the 20 major cities measured.  This stronger than expected report reflects a 5.9 increase from last year, and the best spread in 2-1/2 years.

What is impressive about this latest report is some of the weakest cities in the past have shown significant improvement.  The Midwest, notably Ohio and Michigan, which have been struggling to move higher, showed price growth of 0.9 percent in Cleveland, and 0.8 percent in Detroit.

When it comes to year-on-year appreciation, nothing is beating the Pacific Northwest.  For well over a year, Seattle and Portland have been leading the country in price appreciation.  Seattle home prices are currently up by 12.1 percent from the same time last year.  Portland, Oregon is higher by 9.6 percent.

Overall home prices across the country are averaging a year-on-year increase of 5.9 percent.  Although this number is respectable, it is hard for people to be super excited about it.  The interesting dynamic about this increase is it is occurring in a low interest rate environment.  Typically, when rates are low, home appreciation can be stagnant.

Pending home sales were the only negative in this week’s housing data.  This sector showed a decline of 0.8 percent.  The only reason for the decline is the lack of available inventory.  Demand remains strong.

Rounding out this week’s housing reports was the data on new home sales.  From February’s sales of 592,000, March showed a nice increase up to 621,000.  Permits for new construction are also higher.  What is very encouraging in the latest report is the increase in new home sales did not come at the expense of reduced prices.

Prices for new homes rose a very strong 7.5 percent.  Sales are up a whopping 15.6 percent from a year ago.  More homes came on the market, however with the increase in demand, overall supply declined down to 5.2 months from 5.4 months.

Next week’s potential market moving reports are:

 

  • Monday May 1st – Construction Spending, PMI Manufacturing Index
  • Tuesday May 2nd – FOMC Meeting Begins
  • Wednesday May 3rd – FOMC Announcement, MBA Applications, ADP Employment Report
  • Thursday May 4th – First time Jobless Claims, Factory Orders
  • Friday May 5th – Employment Situation

 

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends.  I welcome the opportunity to serve you in any way I possibly can.  Please feel free to reach me at 661-618-1789.

 

Here’s a fun idea for this weekend!

If you love books the way I do, come down to the Los Angeles Times Book Festival at USC this weekend! I’ll be there on Saturday from 10-1:00 and most of the day on Sunday. It’s a family friendly event and it’s free! I’ll be in booth 167. I would love to see your friendly face!

On another exciting note, I’m working on a new Podcast series. I’ll be hosting a show, with various guest speakers. We’ll be touching on many topics, including money smarts, mortgage questions, getting your financial house in order, personal development, and so much more. The hope is to inspire, empower and educate!

I’ll be sending out more details soon.

Have a great weekend and come join the fun at the book festival!

Onto the market update…

With not much economic data to trade on, investors have been using speculation to fuel their investment decisions this week. From concerns regarding healthcare to tax reform, investors are making guesses as to what legislation will be passed in the coming months and year to base today’s investment decisions. The Dow has been trading from positive to negative, back to positive territory throughout the week. However, the index has remained within a 200 point range, up and down.

In the housing sector, builders continue to remain optimistic on the future of new construction sales. Buyer traffic has been significant in recent months and shows no sign of slowing anytime soon. The traffic component of the index came in above 50 for the 4th time in the last 5 months. Future and current sales continue to remain very strong. The West Coast continues to stay out front as far as new construction. The Northeast, to no one’s surprise, came in last out of the 4 regions. The South and Midwest remain strong as well, however at a pace slightly behind the West.

In contrast to builder optimism on the housing market, the number of new starts on single family homes was down 6.8 percent. This is the weakest level since November. The greatest strength came from the multi-family side. The good news in the overall report is that both sectors are up nearly 10.0 percent from the same time last year.

To offset the less than stellar housing starts data, permits for new construction are up 3.6 percent. Once again, multi-family home permits are leading the way. What is hard to figure out is the difference between the positive builder sentiments displayed in the housing market index versus the disappointing data on housing starts. In the coming months, we should expect to see them come more in-line with each other and reflect similar trends.

The Mortgage Bankers Association of America reported that applications for home purchases declined 3.0 percent for the week ending April 14th. Despite mortgage rates moving down towards 2017 lows, it seems that buyer activity has slowed. The most likely culprit for this is the national lack of available inventory. What used to be an issue primarily in the Northwest, has spread to many areas of the country. Even the East Coast, which has not seen a shortage of inventory since prior the market meltdown, is experiencing a significant shortage of available homes for sale.

Refinance applications for the same week were up by 0.2 percent. It will require rates to go lower by about 50 basis points in order to rekindle another refinance boom.

Next week’s potential market moving reports are:

  • Monday April 24th – Dallas Fed Manufacturing Survey
  • Tuesday April 25th – FHFA House Price Index, S&P Corelogic Case-Shiller HPI, New Home Sales, Consumer Confidence
  • Wednesday April 26th – MBA Applications
  • Thursday April 27th – First Time Jobless Claims, Durable Goods Orders, Pending Home Sales
  • Friday April 28th – GDP, Consumer Sentiment

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at 661-618-1789.

 

Spring and hope…

I love this time of year. My roses and other flowers are flourishing, which makes the garden look and smell wonderful. Spring always seems like a time of new beginnings for me. I hope it does the same for you.

Whether you celebrate Easter or Passover, I wish you and your family a blessed weekend!

One side note- mark your calendar! American Family Funding is hosting a book signing event for my latest book, Money Rules 101, on Thursday, May 11th. The first 50 guests receive a complimentary copy, signed by yours truly! 🙂 More details to follow.

Onto the market update…

Trump euphoria certainly appears to have ended in the minds and hearts of investors. The stock market finished the week down once again by a total of 223 points. Markets are closed today, Friday, in observance of Good Friday.

The challenges to the market is that with each passing week, it appears that President Trump will continue to have major headwinds working against him in passing tax reform along with his other economic stimulus ideas touted during his run on the campaign trail. Although, almost every President runs into challenges implementing the ideas and changes from their campaign, investors had very high hopes that the new administration would be able to facilitate changes rapidly that would have an immediate impact on corporate profitability.

Mortgage rates have been steadily declining and have returned to the lowest point for 2017. Although refinances have yet to show signs of resurgence, purchase application increased last week by 3.0 percent according to the Mortgage Bankers Association of America.

In the labor markets, first time jobless claims continue to remain extremely low. The latest report for the week ending April 8th shows claims all the way down to 234,000. This was below most analysts’ expectations and continues to float at all-time historical lows. Continuing claims also remain very low. Overall the labor markets are considered to be at “full employment”.

If you have been listening to the Fed for a number of years, they have been focused on getting inflation to the range of about 2.0 percent per year. Once again, it seems like consumers are making it almost impossible for this to occur. Although in the last few months we have seen inflation tick upward on both the wholesale and retail levels, the latest reports may have thrown a monkey wrench into the likelihood that the trend will continue.

The latest PPI for the month of March showed that prices on the wholesale level declined by 0.1 percent. Experts were expecting the latest results to either be flat or show a slight increase. Pricing on the consumer level declined by a shocking 0.3 percent, while analysts were looking for prices to rise by 0.2 percent. Even when the volatile food and energy prices are removed from the CPI, prices still declined 0.1 percent. It is too early to tell, but the lack of price growth may have an impact on the Fed’s decision to put forth another interest rate increase anytime soon.

Next week’s potential market moving reports are:

 

  • Monday April 17th – Housing Market Index
  • Tuesday April 18th – Housing Starts, Industrial Production
  • Wednesday April 19th – MBA Applications
  • Thursday April 20th – First Time Jobless Claims, Leading Indicators
  • Friday April 21st – Existing Home Sales

 

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at 661-618-1789.

 

I love this!

Yesterday I had the privilege of speaking to a group of young adults, going through a program with the Los Angeles County Sheriff Department. You may remember I did a workshop with the Sheriff department last year, which was also amazing.

Again, this group of young individuals were engaged, motivated to learn and asked a ton of great questions. We discussed mindset, goal setting, understanding their ‘why’, and of course, money smarts!

Many are planning on becoming firefighters or sheriffs! It was an inspiring conversation for all of us!

On another note, if you happen to purchase my book, Money Rules 101, would you do me a HUGE favor and leave an Amazon review? I would greatly appreciate it. Go here to review.

Onto the market update…

With very limited economic data to trade on this week, investors took their focus to Capitol Hill and seemed to be paying attention to President Trump and what is happening with Congress.  The President has been trying to work with Congress on a replacement for Obamacare.  If you have been listening to the news, it is obvious that his negotiations have not been going well.

Investors are now beginning to question whether the President will be able to get passage of tax reform, which would be a boost to business overall.  With this concern, investors have been pulling money out of stocks in recent days driving the DOW down this week by almost 300 points.

Outside of Presidential happenings, the majority of the news this week was related to housing.  Surprisingly, the FHFA house price index came in unchanged for the month of January.  Given the extreme shortage of available homes for sale, the lack of appreciation surprised many analyst’s. Home prices remain higher by 5.7 percent from the same time last year.  With the Spring buying season about to start, it is expected that home prices will jump, unless many more sellers enter the market increasing available inventory.  This latest report is the weakest month-to-month showing in more than 4 years and the weakest year-on-year rate in 2-1/2 years.

The East South Central was the hardest hit area in which home prices declined 2.0 percent.  Prices in this region are still up by 3.5 percent from last year, however expectations were that there would be much more of a positive difference between this year and last year.  The Pacific market was the winner with a 0.6 percent monthly gain.

Even existing home sales came in with softer readings than expected.  Sales are down 3.7 percent in February to a 5.480 million annualized rate.  Single family homes showed weakness with a 3.0 percent decline.  Condo sales represented the biggest decline with a drop of 9.2 percent.  Single family sales remain higher by 5.7 percent from the same time last year.

Overall, existing home sales are up a strong 5.4 percent from last year.  Prices are up 7.7 percent from the same time last year as well.  Home supply has been improving but continues to remain very low.  Many areas of the country are experiencing bidding wars taking place for the homes that are placed for sale.  Even in the Northeast, where typically home prices have been the slowest to rise, sellers are now experiencing multiple bid situations on their homes.

To place a bow on this less than stellar housing report, applications for purchase and refinance mortgages both declined last week according to the Mortgage Bankers Association.  Purchase apps dropped 2.0 percent and refinances declined by 3.0 percent.  Applications are still up slightly from the same time last year and no specific circumstances can be attributed to last week’s decline in activity.

Next week’s potential market moving reports are:

 

  • Tuesday March 28th – S&P Corelogic Case-Shiller HPI, Consumer Confidence
  • Wednesday March 29th – MBA Applications, Pending Home Sales
  • Thursday March 30th – First Time Jobless Claims
  • Friday March 31st – Consumer Sentiment

 

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends.  I welcome the opportunity to serve you in any way I possibly can.  Please feel free to reach me at 661-618-1789.

 

Happy St. Patti’s Day!

Happy St. Patti’s Day!- I may have changed the spelling of this day…just a bit. 🙂

Whether you plan on celebrating with friends or family, I hope you enjoy this festive day. We had green beer at our event last night, which seemed to be a hit! And green yogurt!

May this day bring you much luck, hope and happiness!

Happy weekend.

Onto the market update…

As expected, the Fed at the March FOMC meeting this week, elected to raise interest rates by .25 percent. This did not surprise investors and both the stock and bond markets greeted the increase with little more than a yawn. The Fed has kept their forecast the same for the remainder of the year with the expectation of a total of 3 rates hikes. As strong as the economy appears to be, there continues to be areas of concern in which the Fed may alter their plans for rate increases.

The Housing Market Index jumped a very large 6 points in March to 71. This is the strongest reading for current economic cycle. Home builders appear very optimistic with the current index reading at 78, which is up 7 points from February. Future sales are also seen as strong with a gain of 5 points in the index. The strongest part of the report is that buyer traffic is way-up with a strong reading of 54. This represents an increase of 8 points and is the 3rd reading above 50 in the last 4 months. Analysts believe that part of the increase is representative of first time homebuyer activity increasing. The report on housing starts was more mixed, with an annualized rate of 1.288 million and a 1.213 million rate for total permits. Permits for single-family homes increased 3.1 percent in February to a rate of 832,000. The good news in this data is that even though the new home market has been struggling with very short supply, the current rate is up 13.5 percent from the same time last year. Housing starts for single-family homes were up a strong 6.5 percent to an 872,000 rate and a 3.2 percent year-on-year gain.

Despite the fact that mortgage rates have been rising, it does not appear to be holding back loan applications according to the Mortgage Bankers Association. For the week ending March 10th, purchase application rose 2.0 percent while refinances increased by 4.0 percent. The purchase index is up 6.0 percent from the same time last year.

Inflation appears to be heating up as producer prices are showing upward pressure. The latest increase of 0.3 percent was higher than expected. Even when the volatile food and energy component was removed from the equation, wholesale prices still showed an increase of 0.3 percent. Prices are up 2.2 percent from the same time last year and are at nearly the highest point in 5 years. Energy continues to be the main source of pressure on pricing increases.

Following in the path of wholesale prices, the latest readings on consumer prices show an upward trend as well. The most recent data indicates an annual increase of 2.7 percent. This is above the Fed’s goal of 2.0 percent, which likely was a contributing factor to the decision to raise rates.

Finally, first time jobless claims remain at the lowest point in 44 years. Essentially the economy is now considered at full employment with claims at 241,000 for the week ending March 11th.

Next week’s potential market moving reports are:

 

  • Wednesday March 22nd – MBA Applications, FHFA Home Price Index, Existing Home Sales
  • Thursday March 23rd – First Time Jobless Claims, New Home Sales

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at 661-618-1789.

 

Radio interview…and your Mortgage Market update!

A little over a week ago, I was invited to an interview on our local radio station, KHTS 1220. It was a short segment, but we had fun chatting about the launch of my newest book, Money Rules 101. I shared a few tips for parents in the little time we had, with so much more to cover! You can check out the video by scrolling to the post below!

Stay dry and safe on these slick roads!

Onto the market update…

The stock market just keeps going up. Investors once again are optimistic that President Trump’s policies will bolster the business climate. Deregulation is the likely key to economic growth and investors are counting on major changes to much of the legislation that was enacted under the previous administration. There is concern that the market is becoming severely over valued in that stock prices have rocketed to new records without a single change to any rules or regulations as-of-yet. The market increase is all on speculation and it is creating concern that the ride might abruptly end.

The Mortgage Bankers Association of America reported that seasonally adjust applications for home purchases declined 2.0 percent. However, the unadjusted number reflects an increase of 1.0 percent. Housing purchases overall remain strong and there seems to be no sign of buyer demand waning despite interest rates being higher by almost ¾% from last summer. Refinances are currently at the lowest level since June of 2009.

Housing starts for January declined by 2.6 percent. The silver-lining in the reports is that the 1.246 million rate was well above most analyst’s expectations. Single-family starts increased by a rate of 823,000 which reflects a 1.9 percent increase in this sector. Year-on-year housing starts are up a significant 6.2 percent for single-family units and a whopping 19.8 percent for multi-family homes.

Permits for new housing construction jumped 4.6 percent in January to an annualized rate of 1.285 million. This report also significantly beat most analyst’s predictions. Single-family permits surprisingly declined by 2.7 percent, however they are still higher than the same time last year by 11.1 percent.

Since the last Fed announcement regarding interest rate policy, there is much talk about just how many rate increases there will be in 2017. Listening to various experts on TV, radio and even in print, you will hear predictions of rate hikes of anywhere from one to as high as four. No matter the number, one thing is very likely, mortgage rates and overall cost of borrowing for consumers will very likely end the year higher than where they are now.

Bolstering the argument for rates hikes is the latest producer price index data. January’s PPI report showed an increase of 0.6 percent, far exceeding market expectations. One of the areas of focus for the Fed in their decision to raise interest rates is how much inflation is taking place. For years, the Fed has wanted to see price growth as a catalyst for rate increases. It may appear that this is beginning to occur. This is only one report, but the increase of prices on the wholesale level was significant.

Next week’s potential market moving reports are:

 

  • Monday February 20th – Presidents Day: Markets Closed
  • Tuesday February 21st – PMI Manufacturing Index
  • Wednesday February 22nd – MBA Applications, FOMC Minutes, and Existing Home Sales
  • Thursday February 23rd – First Time Jobless Claims, FHFA House Price Index
  • Friday February 24th – New home Sales and Consumer Sentiment

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at 661-618-1789.

 

Radio fun!

Tori is live with Patti Handy discussing her new book "Money R…

Tori is live with Patti Handy discussing her new book "Money Rules 101" – KHTS AM 1220

Posted by KHTS AM 1220 on Wednesday, February 8, 2017