My prayers for Texas…and your market update

Watching the devastation that has occurred in Texas is heart wrenching, to say the least.  There is so little that can be said that has not already been written or voiced.  It is a crisis beyond belief, and it is my hope that as many people as possible will find a way to contribute to help those in need.  There are many legitimate ways to contribute (stay away from scams) to assist in the long road to recovery.

My heartfelt prayers go out to everyone affected by this.

Onto the market update…

The Stock Markets:  It seems that investors around the world do not have much concern about geopolitical events derailing the current market rallies in many of the world’s major economies.  Even in the U.S., where the devastation from Hurricane Harvey, and the impact it is having on oil production, has done little to reverse investor enthusiasm towards future economic growth.

S&P Case-Shiller Home Price Index:  The latest data on home price appreciation in June shows a virtually flat market.  Between last week’s FHFA price data, and now the latest Case-Shiller report, home prices are up only 0.1 percent.  Overall, prices are higher by 5.7 percent from the same time last year.

Despite the continued lack of inventory that exists nationwide, home prices have stabilized which can be a catalyst for a few positive things to occur in housing.

Time will tell, but it is possible that homeowners now seeing the run-up in prices slowing, may elect to start placing their homes on the market.  This could bode well for a very strong Fall market as the pent-up demand for housing would likely rapidly absorb any new inventory that appears. Additionally, the stabilizing of prices keeps home affordability in check potentially increasing the number of buyers who can qualify to purchase bolstering housing strength.

Consumer Confidence: The latest reading from the Conference Board’s measurement of consumer confidence shows that August has many people believing in the strength of the economy.  The reading of 122.9 is the highest the index has been since March, and the second highest dating all the way back to December of 2000.  Consumer confidence has the potential to also translate positively into growth in the housing market in the coming months.

Mortgage Rates and Applications:  Surprisingly, despite falling mortgage rates, it does not seem to be translating into an increase in purchase or refinance activity according to the Mortgage Bankers Association of America.  The latest data for the week ending August 25th shows a decline of 3.0 percent and 2.0 percent in purchase and refi applications respectively.  Even with the seasonal adjustments made for the end of the summer, applications are down.  The bright spot in the report is that applications for purchases remain 4.0 percent higher than the same time last year.

Next week’s potential market moving reports are:

 

  • Monday September 4th – US Holiday: Labor Day – All Markets Closed
  • Tuesday September 5th – Factory Orders
  • Wednesday September 6th – MBA Mortgage Applications & ISM Non-Mfg Index
  • Thursday September 7th – First Time Jobless Claims & EIA Petroleum Status
  • Friday September 8th – Wholesale Trade & Consumer Credit

 

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.