Gratitude

Gratitude.

It’s one of my favorite words.

When I focus on my blessings, and that which I am truly grateful for, I feel a physical change within me. Even amid the madness of our world lately, I always have many things to be grateful for.

In my new book, I discuss the importance of gratitude, in fact, referring to a “gratitude adjustment” as a necessary habit for some.

Today, I want to express how grateful I am for sharing this journey with you. I am grateful for working with and for you. I am grateful for your friendship and support. I’m grateful you are reading my newsletter!

Thank you from the bottom of my heart for allowing me into your home, one way or another.

May you be blessed with a wonderful Thanksgiving next week, surrounded by those you love!

Happy Thanksgiving!

Onto the market update…

After the initial market jubilation in belief that President Elect Trump might actually be good for the economy and markets, things have settled down.  The Dow Jones Industrial Average is basically poised to finish the week in about the same place it started.

Helping matters is that it appears that Mr. Trump has toned down much of his rhetoric and inflammatory comments, which is giving investors reason to believe that he will not make rash decisions on economic policy.  Time will tell as to exactly what will happen.  For now, investors are paying close attention to his staff appointments.

Mortgage rates have shot up .50 percent since the election in response to bond yields rising rapidly.  The mortgage industry is feeling it in that applications for purchases and refinances have been declining.  Refinance applications dropped 11.0% for the week of November 11th.  Purchase apps declined 6.0%.

Already there is much chatter that housing affordability is being directly impacted due to the higher rates increasing the cost of homeownership.  Higher rates mean higher monthly housing payments.  The one thing to keep in mind is that home prices will move towards a point where there is balance to meet demand.  For example, sellers may find that they might have to lower the price of their home slightly to offset the interest rate increase to keep buyers interest.

We have been in a market in which mortgage rates have been artificially low for an extended time.  The talk of rising rates has been around for more than five years.  It is just that now it has finally become reality.  Anyone who has been around long enough in the housing market knows that regardless of interest rates, homes will be purchased and sold.  There will always be back and forth movement related to rates, home prices and housing demand.

On a positive note for housing, starts of new construction surged 25.5 percent in October to an annualized rate of 1.323 million. This is the highest number since August of 2007.  The monthly jump in percentage is the strongest since 1982.  The best part of the report is that single family construction jumped 10.7 percent which follows September’s increase of 8.4 percent.

Inflation, excluding volatile food and energy prices, remains very low on both the wholesale and retail levels.  Rising inflation is starting to become more of a concern related to Donald Trump’s plans for spending and economic stimulus, however, for now it is speculation.

Next week’s potential market moving reports are:

  • Monday November 21st – Chicago Fed National Activity Index
  • Tuesday November 22nd – Existing Home Sales
  • Wednesday November 23rd – MBA Applications, Jobless Claims, FHFA HPI, New Home Sales, FOMC Minutes, Consumer Sentiment
  • Thursday November 24th – Thanksgiving Giving: Markets Closed
  • Friday November 25th – International Trade in Goods

 

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.