The World Series…and your market update

I’m not typically one to watch all baseball games, but I did get caught up in the World Series! Sorry to see our Dodgers lose, but they did put up a great fight! Although, in game 7, it seems they lost their mojo.

With all the devastation in Houston the last few months, I’m happy their team could bring them some joy, so if we had to lose to someone, I’m glad it was to the Astros.

Here’s to next year and all of its possibilities…to the Dodgers and to you!

 Onto the market update…

The likelihood of a December Fed rate increase is very probably based upon the latest Fed announcement. On Wednesday, the Fed stated they have upgraded the status of the economy from “rising moderately” to “rising at a solid rate”. The Fed indicated that the labor market continues to strengthen, and that even though inflation remains stubbornly low, there are many positive economic factors that make a December rate increase likely to occur.

Case-Shiller Home Price Index:

Home prices continue to rise steadily. The most recent data shows home prices rising 0.5 percent for the month of August in the 20-city adjusted index. Home prices compared to the same time last year are higher by 5.9 percent. This is the largest year-on-year growth spread we have seen in the last 3 years.

Construction Spending:

Spending on the construction of residential homes, although basically unchanged for September, is now 9.6 percent higher than the same time last year. Spending on new single-family and multi-family homes increased in the month by 0.2 and 6.0 percent respectively. Interestingly is that spending on home improvements declined 0.6 percent. This is likely to change in that many mortgage and banking professionals have indicated that they have seen more homeowners making inquiries on obtaining Home Equity Lines of Credit.

Mortgage Rates and Applications:

Purchase applications fell by a seasonally adjusted 1.0 percent for the week ending October 27th. This is the second week of application declines, in what could be a possible reaction to the uptick in mortgage rates. Refinancing applications declined by 5.0 percent. Refi’s are always far more sensitive to slight movements in mortgage rates. Purchase applications represent 51.3 percent of all loan activity.

First Time Jobless Claims:

 Claims remain very near historic lows – down to 229,000. The devastation in Puerto Rico was expected to increase the overall number, however other areas of the country are countering the increase with an improved labor market and lower claims.

Next week’s potential market moving reports are:

 

  • Tuesday November 7th – Job Opening and Labor Turnover Survey (JOLTS)
  • Wednesday November 8th – MBA Mortgage Applications
  • Thursday November 9th – First Time Jobless Claims
  • Friday November 10th – 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.