Stop listening to the negative noise!

I absolutely love working with first time home-buyers. I think the most rewarding part is watching them realize a dream come true. I love coaching them through the process, which removes much of the fear and unknown.

There is so much “news” about how difficult it is to get a loan and unless you have 20% down payment you can’t qualify. NOT TRUE!!! We have all types of loans, with different down payment options.

Don’t listen to the negative noise. Call me so we can review your personal situation!

Happy Weekend!

Onto the market update…

There are no surprises in the latest comments from Janet Yellen’s testimony on Wednesday. The Fed continues to have the intention to begin tapering the Fed balance sheet and also instituting a number of rates hikes over the next few years. Yellen repeated that inflation is being held down for a number of unusual factors. Cell phones, drugs and gasoline prices are remaining abnormally low and upward pressure to increase prices has been met with consumer backlash. Additionally, inflationary pressure has not responded to the strong employment environment. It appears that consumers, despite how well the job market may be, are continuing to remain frugal in their shopping choices. The internet has made it very easy to comparison shop and purchase from the lowest retailers. Mortgage Bankers Association Loan Application Weekly Data

In a complete reversal of fortune, mortgage applications for both purchases and refinances turned negative for the week ending July 7th. Purchase applications declined a seasonally adjusted 3.0 percent. Refinances plummeted 13.0 percent to the lowest point since January 2017.

The concerning part about this recent data is that the adjustment for loan activity was based upon the 4th of July Holiday. When that holiday adjustment factor is removed, purchase applications declined a whopping 22.0 percent from the prior week. Loan applications are higher from the same time last year by only 3.0 percent.

JOLTS Report (Job Openings and Labor Turnover Survey) & First Time Jobless Claims

It appears that employers are finally starting to catch up on their hiring. The most recent JOLTS report shows that job openings declined by 5.0 percent in May, and hiring increased by 8.3 percent. The current pace of hiring is a new record and the current opening is the second lowest level this year.

Initial first time jobless claims continue to remain at or near historic lows. The latest claim number of 247,000 remains far below the benchmark amount of 300,000.

Producer Price Index

Inflation on the wholesale level continues to remain extremely low. The month of June only showed an increase of 0.1 percent. This once again creates a challenge for the Fed to raise interest rates.

Next week’s potential market moving reports are:

 

  • Monday July 17th – Empire State Manufacturing Survey
  • Tuesday July 18th – Housing Market Index
  • Wednesday July 19th – MBA Mortgage Applications, Housing Starts
  • Thursday July 20th – First Time Jobless Claims, Bloomberg Consumer Comfort 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.