Giving Thanks!

Happy almost Thanksgiving to you and your family!

Thank you, from the bottom of my heart, for your friendship and continued support this year. I am truly blessed and grateful for being surrounded by such amazing people in my life!

As we begin the New Year, I hope the visions and dreams you hold dear to your heart become your reality.

Embrace every simple, yet special moment in your day!

Have a wonderful Thanksgiving!

Onto the market update…

In what has seemed like forever that elected officials have talked about revamping the outdated and often considered absurd tax code, change may finally be coming. On Thursday, House Republicans passed their version of the tax code revisions. By no means does this represent that the tax code will change, however it is a big first step, and a milestone in the road to change. There are many more steps to the tax code being changed, which had eluded Congress for decades. The Dow Jones Industrial Average soared almost 200 points on this news. The other major indices were up significantly as well.

Housing Market Index:

Home builders are reporting that they are seeing an increase in activity. In fact, builders are saying that this is the best market since March. Current and future sales are coming in at a very strong level of 77. Traffic to home building sites is also up by 2 points for the best reading since May. It is uncommon for this time of year to see significant increases in activity, so this is welcome news for the housing market.

Mortgage Rates and Applications:

Purchase applications rose 0.4 percent for the week ending November 10th. Refinance applications, despite mortgage rates remaining relatively flat, rose 6.0 percent for the week. What is exciting in the latest report is that purchase applications are 17.0 percent higher than the same time last year. The strong year-on-year gain of purchase applications points to future strength in underlying home sales.

Inflation:

On the wholesale level, pressure for price increases showed signs of life for the month of October. The Producer Price Index rose by a larger than expected 0.4 percent.  Even when you remove volatile food and energy prices, wholesale inflation remained at 0.4 percent.

On the retail end, unfortunately the story was not the same. Consumer prices for October were up slightly by 0.1 percent.  The year-on-year rate was actually down by 2 tenths of a percent.  The core rate of inflation was up only 0.2 percent when food and energy prices were removed from the calculation.

 Next week’s potential market moving reports are:

 

  • Monday November 20th – Leading Indicators
  • Tuesday November 21st – Existing Home Sales
  • Wednesday November 22nd – MBA Mortgage Applications, Jobless Claims
  • Thursday November 23rd – Markets Closed
  • Friday November 24th – NYSE Closes at 1:00PM

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.