Happy 4th!

Happy long weekend!! Are you one of the lucky ones taking Monday off too? Nothing like a 4-day weekend to decompress and recharge the batteries!

I’ll be heading to the beach tomorrow for some family time and to escape this heat! The rest of the weekend will be low key for me, which is a welcome change!

I hope you have an absolutely wonderful weekend and allow yourself to rest and recharge. Stay safe on the roads! Happy Independence Day!!

Please feel free to call me if you have any loan questions or to get pre-approved!

 Onto the market update…

In recent weeks, I have been mentioning how the Summer and Fall housing markets are being predicted, by some experts, to be far above average. We should hope they are correct on account that the early Spring market was a rather large disappointment.

The latest Case-Shiller’s home price index increased by a rather small 0.3 percent in April. In February, home prices were up by 6.0 percent from the same time in the prior year. However, for the month of March, the year-on-year rate slipped back down to 5.7 percent. This is the first reversal in year-on-year spread in a very long time,

To the surprise of many, San Francisco home prices dropped 0.6 percent in the month. Boston was down by 0.7 percent and Cleveland declined by 1.0 percent. Not surprising, is Seattle leading the country with a year-on-year spread up by 12.9 percent.

Mortgage Bankers Association Loan Application Weekly Data

For the week ending June 23rd, purchase applications for home mortgages dropped by a seasonally adjusted 4 percent. The unadjusted level is actually 8 percent higher than the level in the same week a year ago. Refinancing plummeted 9 percent from the prior week, with the refinance share of mortgage activity declining to 45.6 percent of all originations.

Pending Home Sales

May was the 3rd month in a row of decline with a jaw dropping 0.8 percent. This is in direct contrast to expert predictions of a 0.5 percent gain. The weakness in the housing market is spread evenly throughout regions across the country. The West, usually the strongest market, declined by 1.3 percent, which was the largest decline recorded for the month. Although the data on final home sales does not always move in lock-step with the pending home sales data, this most recent report could prove troubling for future final sales data.

Next week’s potential market moving reports are:

 

  • Monday July 3rd – ISM Mfg Index, Construction Spending
  • Tuesday July 4th – Independence Day Celebration – All Markets Closed
  • Wednesday July 5th – MBA Mortgage Applications, Factory Orders, FOMC Minutes
  • Thursday July 6th – First Time Jobless Claims, ADP Employment Report
  • Friday July 7th – National 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.

 

The way I up my game…

I recently hired a Personal Trainer to up my game in the gym. I was hesitant, as I’ve been working out since college and actually got certified myself as a trainer back in the 80’s. I figured I knew it all.

Boy, was I wrong. She is kicking my &%^*. She has me doing routines that reach the muscle in a way I wasn’t doing on my own. And, no cheating with her! What’s up with that? 🙂

Last week, after our workout, my arms were shaking so badly I could hardly wash my hair! I loved it, as I knew we took my body to failure…or really success.

No matter where we are in life, we can always use the help of a coach or trainer to help us “up our game.” We all have room to grow and learn, and I personally love this journey of a deeper self-discovery. I hope it makes me a better parent, mortgage advisor, writer, friend, sister and daughter.

Sometimes it hurts, in this case physically for me, and sometimes it hurts emotionally. But, in the end, the work we do on ourselves makes the world a better place.

I recently heard Oprah make a profound statement that truly resonated with me. So much so, I wrote it down and look at it daily. She said, “your legacy is every life you touch.”

Let that sink in for a minute…

Onto the market update…

After recent reports on housing that have been less than stellar, this week’s reports show that the tide may be turning. From home prices, to existing sales, to loan applications for purchases, things seem to be improving.

May’s existing homes sales report showed a very solid increase of 1.1 percent. This is a complete turnaround from the prior month’s decline of 2.5 percent. Single-family sales increased by 1.0 percent to an annual rate of 4.980 million. Condo sales also increased by 1.6 percent to a 640,000 rate. Another positive in the housing report is the significant increase in supply. With prices moving higher, more homes are coming into the market.

As I mentioned last week, homeowners are finally recognizing the increase in their home value creating the desire to cash out by selling. Inventory increased from 1.960 million from 1.920 million in April and 1.800 million in March. Sales have been increasing each month as well, which reinforces the fact that there is a ton of pent up demand.

The West remains super-hot with sales up by 3.4 percent for the month of May. They are also higher by 3.4 percent from the same time last year. The South had the second strongest increase by percentage with a rise of 2.2 percent for the month. The region is higher than the same time last year by 4.5 percent. The Northeast, which had been lagging, is showing life for the first time in a long time with sales up 6.8 percent. The Midwest continues to struggle with being the only negative sales market with a decline of 5.9 percent. Although the year started out strong, but then mostly slowed during the Spring selling season, life seems to be returning to the housing market now. As mentioned a few weeks ago, there are some experts talking about the late summer and fall real estate market being far stronger than normal.

Home prices also jumped according the Federal Housing Finance Agency. April home prices rose 0.7 percent. March was also revised upward to reflect a 0.7 percent increase. The year-on-year rate is up 4 tenths to 6.8 percent which is the best showing in 3 years. The Mountain region continues to be the strongest market with home prices being 8.9 percent higher than the same time last year. The South is the second strongest market for home values rising with an increase of 8.0 percent. The Pacific, which has always seemed to be leading the way, dropped into 3rd place with a still very respectable increase of 7.5 percent. Next week’s potential market moving reports are:

  • Monday June 26th – Durable Goods Orders
  • Tuesday June 27th – Case-Shiller HPI, Consumer Confidence
  • Wednesday June 28th – MBA Mortgage Applications, Pending Home Sales
  • Thursday June 29th – First Time Jobless Claims, GDP
  • Friday June 30th – Personal Income and Outlays

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.

 

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.