Did you mark your calendars? Next Thursday, May 11th, is my book signing at the American Family Funding offices! The first 50 guests will receive a free copy of my book, so be sure and come early! The fun is from 5:00-7:00 pm. I would love to see you and give you a free copy!

On another note, I was recently interviewed by The Signal, our local newspaper. Here’s a link to the online version. Enjoy the read. ?

Happy Cinco de Mayo! Enjoy your weekend and stay safe!

Onto the market update…

Another week, and once again uneventful events happening on Wall Street. The Dow Jones Industrial Average traded within 100 points plus or minus almost the entire week. The biggest news for the week was the ability for Congress to pass the spending bill and avoid a government shutdown. Other than this agreement, it is clearer with each passing day that Democrats and Republicans could not be further apart on everything else in running this country.

The awaited release of the FOMC Announcement from their meeting this week arrived with little more than a thud on Wednesday. The Fed continues to remain upbeat regarding growth in the economy, however they do acknowledge that some of the fundamentals in the economy are showing slight signs of weakness. There was nothing in the Fed’s report that gave investors reason to feel they may be changing course on the anticipated rate increases likely to happen later in the year.

One of the areas that has showed signs of slowing is manufacturing. The latest index for the Institute For Supply Manufacturing (ISM Mfg Index) declined for the first time after 7 straight months of beating expectations. Not only did it fall short, it was hit much harder than anyone expected. However, although the index did not meet expectations for April, the report standing on its own is quite solid with a reading of 54.8. Any reading above 50 is considered very strong.

April’s ISM Non-Manufacturing Index showed significant acceleration. New orders outside of manufacturing jumped 4.3 points all the way up to 63.2. This is the highest level in almost 12 years. Not only does this report reflect strong orders currently, there is a significant growth in backorders which means that this sector should remain solid for the coming months.

With mortgage rates not moving much in either direction, applications for refinances declined by 5.0 percent for the week ending April 28th. The home purchase market continues to remain red hot as indicated by the MBA’s report of an increase last week of 4.0 percent in purchase loan applications.

Many areas of the country continue to report that bidding wars are taking place on many homes coming on the market for sale. This is leading to frustration by some prospective buyers. Some are making a decision to step out of the market for a while to let things settle down. The frustration of not being able to get an accepted offer on a property is taking its toll on some of them. The good news is that reports from real estate professionals indicate that in many areas, more homes are starting to come on the market. It appears that homeowners are wanting to take advantage of the hot market. The demand is still much higher than inventory so don’t expect the bidding wars to end anytime soon.

Next week is going to be quiet as far as economic reports that may impact the market.

 

  • Monday May 8th – Labor Market Index
  • Tuesday May 9th – JOLTS Report
  • Wednesday May 10th – MBA Mortgage Applications Data
  • Thursday May 11th – First time Jobless Claims, Producer Price Index
  • Friday May 12th – Retail Sales, Consumer Price 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.

 

http://pattihandy.com/clients/812

Radio interview…and your Mortgage Market update!

A little over a week ago, I was invited to an interview on our local radio station, KHTS 1220. It was a short segment, but we had fun chatting about the launch of my newest book, Money Rules 101. I shared a few tips for parents in the little time we had, with so much more to cover! You can check out the video by scrolling to the post below!

Stay dry and safe on these slick roads!

Onto the market update…

The stock market just keeps going up. Investors once again are optimistic that President Trump’s policies will bolster the business climate. Deregulation is the likely key to economic growth and investors are counting on major changes to much of the legislation that was enacted under the previous administration. There is concern that the market is becoming severely over valued in that stock prices have rocketed to new records without a single change to any rules or regulations as-of-yet. The market increase is all on speculation and it is creating concern that the ride might abruptly end.

The Mortgage Bankers Association of America reported that seasonally adjust applications for home purchases declined 2.0 percent. However, the unadjusted number reflects an increase of 1.0 percent. Housing purchases overall remain strong and there seems to be no sign of buyer demand waning despite interest rates being higher by almost ¾% from last summer. Refinances are currently at the lowest level since June of 2009.

Housing starts for January declined by 2.6 percent. The silver-lining in the reports is that the 1.246 million rate was well above most analyst’s expectations. Single-family starts increased by a rate of 823,000 which reflects a 1.9 percent increase in this sector. Year-on-year housing starts are up a significant 6.2 percent for single-family units and a whopping 19.8 percent for multi-family homes.

Permits for new housing construction jumped 4.6 percent in January to an annualized rate of 1.285 million. This report also significantly beat most analyst’s predictions. Single-family permits surprisingly declined by 2.7 percent, however they are still higher than the same time last year by 11.1 percent.

Since the last Fed announcement regarding interest rate policy, there is much talk about just how many rate increases there will be in 2017. Listening to various experts on TV, radio and even in print, you will hear predictions of rate hikes of anywhere from one to as high as four. No matter the number, one thing is very likely, mortgage rates and overall cost of borrowing for consumers will very likely end the year higher than where they are now.

Bolstering the argument for rates hikes is the latest producer price index data. January’s PPI report showed an increase of 0.6 percent, far exceeding market expectations. One of the areas of focus for the Fed in their decision to raise interest rates is how much inflation is taking place. For years, the Fed has wanted to see price growth as a catalyst for rate increases. It may appear that this is beginning to occur. This is only one report, but the increase of prices on the wholesale level was significant.

Next week’s potential market moving reports are:

 

  • Monday February 20th – Presidents Day: Markets Closed
  • Tuesday February 21st – PMI Manufacturing Index
  • Wednesday February 22nd – MBA Applications, FOMC Minutes, and Existing Home Sales
  • Thursday February 23rd – First Time Jobless Claims, FHFA House Price Index
  • Friday February 24th – New home Sales and 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.

 

It’s been a rough week…and your market update.

It’s been a rough week…and your market update.

This week started off rough for me. I had to put down one of my sweet little dogs. He was almost 13 years old, and he had a good life, but nevertheless, it was a horrible experience.

He was struggling with health issues for a while, but still very happy and playful. He followed me everywhere, always. I still find myself looking for him at my feet. I miss him terribly, but happy to know he is not in pain anymore.

Here’s a pic of the little guy (on the right). His girlfriend is still with us. 🙂

dogs2

 

Have a great weekend!

Onto the market update…

 New Home Sales:  The new home market is solid, however it does not seem to be growing based upon the latest Housing Market Index report.  Home builders are enjoying a great buyer’s market with a rating of a very strong 64.  Optimism for future sales declined slightly from 69, down to 66.   The only concern in the latest report is the weakness in buyer traffic.  It appears that first time homebuyers remain noticeably absent from the new home purchase market.

The West continues to lead the country in new construction followed by the southern region.  The Midwest remains healthy in the building of new homes and the Northeast, as usual, continues to lag way behind.

Mortgage Rates:  It’s amazing just how sensitive buyers and existing home owners are to mortgage rates.  With the slight uptick in rates last week, mortgage applications declined. Although the drops are small, it is still a change in direction and an illustration of just how close borrowers are watching mortgage rates.  The Mortgage Bankers Association of American reported that applications for purchases and refinances both declined by 2.0 percent and 1.0 percent respectively.

Housing Starts:  The housing sector continues to improve with housing starts rising by 4.8 percent in June.  Permits also increased 1.5 percent which shows that builders remain confident about the future of housing related to new home construction.  Single-family home starts rose 4.4 percent with permits up 1.0 percent.

When compared from the previous quarter, housing starts are up 0.8 percent while permits have remained virtually flat.  The housing market is not on fire, however it is directly contributing to economic stability.

Existing Home Sales:  This housing sector continues to show gains as existing home sales climbed 1.1 percent for the month of June. At an annualized rate of 5.570 million, this is the best pace since February 2007.  Single-family sales increased a very strong 0.8 percent in June, and is currently 3.1 percent higher than the same time last year.

FHFA House Price Index:  The rise in recent home sale prices appears to be driven in part by seller concessions.  The FHFA house price index rose 0.2 percent for the month of May.  This is the weakest increase since last August   Home prices are up 5.6 percent from the same time last year which is one of the lowest differentials since the start of the housing recovery.

Next week’s potential market moving reports are:

 

  • Tuesday July 26th – S&P Case-Shiller HPI, New Home Sales, and Consumer Confidence
  • Wednesday July 27th – MBA Mortgage Applications and New Home Sales
  • Thursday July 28th – First Time Jobless Claims and EIA Petroleum Report
  • Friday July 29th – GDP and 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.