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Tori is live with Patti Handy discussing her new book "Money R…

Tori is live with Patti Handy discussing her new book "Money Rules 101" – KHTS AM 1220

Posted by KHTS AM 1220 on Wednesday, February 8, 2017

Perspective!

I had a situation last week that was a test of my patience. I try to look at ‘tests’ as opportunities to grow and learn from, yet sometimes I fail.

This situation, a few years ago, would have made me go a little nuts. I think with age, comes wisdom and perspective. I viewed this situation differently and put it in its place. I knew it would be resolved, and my going crazy over it wouldn’t help.

In the end, it was resolved and all was good. Perspective can make or break our experiences, with anything in life. I’m going to try and step back and view situations from all angles, before ‘reacting.’

Hopefully, this will add years to my life and quality to my days. 🙂

 Onto the market update…

 Despite the makings for a very volatile week in the stock market, the indices remained in a relatively narrow range of trading. Between all of the economic reports released this week, and the constant release of Executive Orders from President Trump, investors continue to be taking a wait and see attitude on everything.

Finally, after being strong but stagnant in growth, pending home sales might finally be rising. For the month of December, the index rose a strong 1.6 percent. This was above Econoday’s highest estimate for an increase. This rise points to strong sales numbers for January and February. Pending sales were strongest in the West with a 5.0 percent increase. The Midwest trailed with an increase of 3.4 percent.

Case-Shiller’s home price index, which had shown little movement in recent months, jumped in November by 0.9 percent. This was the strongest gain since dating back to March 2015. Home prices continue to remain higher from the same time last year. Currently the spread is 5.3 percent. The East appeared to lead the country in price appreciation for the most recent monthly report. New York, which has been flat, jumped a surprising 1.2 percent in November. Despite the increase, New York continues to be the weakest of the 20 cities in the index for overall year on year growth. Boston also enjoyed nice upward movement with price appreciation of 1.2 and 1.0 percent for the last two monthly reports. Prices are also 5.5 percent higher than the same time last year. Not surprising, the West, especially the Pacific Northwest, continues to be the leader in overall yearly price appreciation. Seattle is up 10.4 percent from the same time last year and Portland, Oregon is higher by 10.1 percent.

To no surprise, the Fed did not increase rates at their FOMC meeting this week. The Fed kept monetary policy the same, however there seems to be slightly different language in their summary that upgrades the likelihood of inflation later this year. The Fed confirmed that they do have plans for rate hikes later this year, however exactly when they will occur has not been determined. Economic data will drive the Fed’s decision as to when and how much to raise rates.

The housing market continues to hum along with stable demand. Inventory remains low in many parts of the country. The Mortgage Bankers Association of American reported that purchase applications for the week of January 27th fell a seasonally adjusted 6.0 percent. Refinances dropped 1.0 percent. However, unadjusted, the purchase index jumped 12 percent from the previous week, which is higher than the same time last year by 2 percentage points. (Seasonal adjustment is a statistical method for removing the seasonal component of a time series that exhibits a seasonal pattern)

Finally, U.S. employers added 22,700 jobs in January. This is the highest growth in employment in four months. Friday’s report was far above all analyst’s estimates which topped out at 175,000.

Next week’s many potential market moving reports are:

 

  • Tuesday February 7th – JOLTS Report
  • Wednesday February 8th – MBA Applications
  • Thursday February 9th – First Time Jobless Claims
  • Friday February 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.

 

Friday, the 13th.

Friday, the 13th.

Oddly enough, it’s always been a favorite date for me. In the past, my mom has notoriously had something good happen on this date. I’m excited to call her later and hear something fun or exciting.

In reality, the blessing is that I get to call her at all. My mom has always been my pillar and my greatest cheerleader. I love her dearly and I love our talks. I don’t take our conversations, or time together, for granted!

Having said this, if I happen to see a black cat today, I will probably pause and go in another direction.

Have a wonderful weekend!

Onto the market update…

An interesting statistic has shown up for 2016 that has caught many real estate and mortgage experts by surprise. According to the real estate website Trulia, the number of transactions failing to close after going into contract has risen sharply in many areas of the country.

Trulia’s analysis has determined that property listings that moved from for-sale to pending sale, returned back to for-sale again in 2016. This is almost twice as many that occurred versus 2015. This is not focused in any particular region of the country. 96 of the nation’s 100 largest metro areas showed this trending increase. This issue is occurring in high and low priced markets, large and small markets, and affluent and poorer neighborhoods.

For instance, in Ventura California, 11.6 percent of prospective sales failed to close. This was the highest in the country. This represents an increase of 3.1 percent from 2015. Tucson, Arizona was second with 10.8 percent that failed, which is 3.5 percent higher than 2015. For perspective, the median home price in Ventura is $548,000, whereas Tucson median price is $176,000

2017 appears to be starting out stronger for mortgage applications and home purchases. Now that Trump euphoria has seemed to ease, the stock market has been stable and mortgage rates have eased off their recent highs. According to the Mortgage Bankers Association of America, applications for purchases and refinances increased 6.0 percent and 4.0 percent respectively for the first week of the year.

The employment sector continues to remain strong. Although last Friday’s employment report for new hiring came in at 156,000, which was below analyst’s expectations, buried within the report was the strength in wage growth. The Fed is continuing to watch what is happening with job hiring, however the increase of hourly earnings by 0.4 percent has now caught the attention of the Fed. Rapid wage growth can lead to inflation. Although the Fed wants inflation to increase, they are continuing to remain cautious in that any increase needs to be controlled.

Following last week’s labor department report was the first time jobless claims data released on Thursday. Claims continue to remain very low at 247,000. Continuing claims continued to improve with a decline of 29,000.

Finally, the Job Opening and Labor Turnover Survey (JOLTS) continues to show a significant gap between available job openings versus hiring. It appears that employers continue to struggle to fill open positions as the number of new hires is far below the number of available positions.

Next week’s many potential market moving reports are:

 

  • Monday January 16th – Martin Luther King Holiday – All Markets Closed
  • Wednesday January 18th – MBA Applications, Consumer Price Index, House Price Index, Consumer Price Index, and Industrial Production
  • Thursday January 19th – First Time Jobless Claims and Housing Starts

 

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.

 

New Year-New Book!

I hope your holidays and New Year celebrations were wonderful! I was able to enjoy a little down time, including a trip to Disneyland. I love that place during Christmas! The lights and decorations bring out the kid in me.

I was also able to work on the final pieces of my new book, “Money Rules 101- Master Your Money Before it Masters You,” which should be out February! I’m super excited about this book, as I know it will help everyone who reads it. I’ll be starting an interest list soon, so watch for that coming!

Enjoy your weekend!

 Onto the market update…

Now that the holidays are over, let’s see if the Dow Jones Industrial Average can break the 20,000 mark. Last week the index came very close, but investor concerns about U.S. and China trade relations had many sitting on the sidelines. In addition, many people are just getting back from vacation and getting things going for the New Year and the stock market was not their primary focus.

Even though this week had enough economic news to impact the markets, it did not seem like many were paying attention. The ADP Employment Report, which typically can draw a significant market reaction, didn’t seem to do much in the investment community. ADP reported a softer labor report than most experts had anticipated. ADP announced that 153,000 new jobs were added in December. Analysts were expecting closer to 172,000.

In the housing market, construction spending picked up heading into the latter part of the year. The latest report for November 2016 showed a jump in spending by 0.9 percent. That was significantly higher than analyst’s expectations. Additionally, the spread between construction spending at this point versus the prior year increased to 4.1 percent. This was a healthy increase from the prior month in which the spread year over year was only 3.4 percent. This is the best reading on construction spending since June 2016. Residential construction accounted for a 1.0 percent increase in the report and the largest portion of the gain was in single family sector.

The Mortgage Bankers Association of American reported huge declines in refinance applications for the final week of the year. According to the MBA’s latest report, refinance applications declined 22.0 percent. Purchase applications only dipped 2.0 percent despite it being a major vacation week. Mortgage rates have stopped moving upward and have even declined slightly in the last couple of weeks. Now that the holidays are over, many eyes will be watching the direction of the housing market. Many experts are anticipating the purchase and sale market to be the best since the 2008 recession.

On Wednesday, the FOMC released their minutes from the Open Market Committee Meeting. The theme that seemed to come from reading the minutes is that the Fed is taking a wait and see attitude toward future rate increases. There are many uncertainties regarding future government spending and tax cuts under the Trump presidency. Any of the talked about initiatives can have a major impact on inflation and economic productivity. For the time being, the Fed is planning for two interest rate increases in 2017. However, they clearly indicated that they will adjust their forecasts as needed with so much unchartered governmental decisions lying ahead.

Next week’s potential market moving reports are:

 

  • Monday January 9th – Labor Market Index
  • Tuesday January 10th – JOLTS Report
  • Wednesday January 11th – MBA Applications
  • Thursday January 12th – First Time Jobless Claims
  • Friday January 13th – Producer Price Index and Retail 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.

 

Here’s what is moving…

I can’t seem to get my head around the fact that we are 9 days away from Christmas. Honestly, how does that happen?

It seems the older I get, the faster time flies. It should be the other way around, don’t you think? As we age, time should move slowly, just like we do as we get older. 🙂

Speaking of moving, if you’re thinking of buying a new home, we should talk. Rates are moving, so we should strategize a game plan together. Whether rates move slowly or not is yet to be seen. I personally, don’t expect them to move rapidly. Unlike the holidays approaching…

Happy weekend and happy shopping!

Onto the market update…

As expected, the Fed raised interest rates by .25% at their FOMC meeting this week. What was not expected was the projection of three rates increases in 2017. Investors were expecting to hear that only two increases would be forthcoming. On this news, the bond market took a beating and yields rose rapidly. The threat of inflation works against bond values, which simply put, means mortgage rates rose higher on the Fed announcement.

To keep things in perspective, it is important to understand that the Fed is only projecting the increases. As we have experienced for many years, the Fed will change their forecasts based upon economic data, so the increases are not guaranteed.

The stock market has been hovering very close to the 20,000 mark for the entire week. The “Trump” factor, as it is now being called, is keeping consumer optimism at the highest level since the recession. The belief that Trump’s plans for reduction in regulation, which is blamed for stifling economic growth, will bolster the economy and labor markets significantly in the next couple of years. There is no guarantee on the results of his economic policies, but the perception for strong economic growth remains high.

The increase in mortgage rates is taking its toll on loan applications according to the Mortgage Bankers Association of America. The latest report for the week ending December 9th is that purchase applications declined 3.0 percent and refinances dropped 4.0 percent. Although some of the decline can be attributed to rising rates, we also must take note that we are heading into the final stretch of the holiday season. It is common for housing activity to slow at this time of year.

On a positive note, many experts are predicting that the housing market will increase significantly in 2017. With the projected improvement in economic conditions, the labor market should continue to expand, and personal incomes are expected to rise more than they have in years. Inflation, which is likely to increase in the coming year, leads to increased wage growth. This will most likely lead to more consumers jumping into the housing market. Even though interest rates may continue to increase, when there is positive consumer sentiment, more money tends to go into housing.

Further bolstering the sentiment that people are feeling better about the direction of the economy, producer prices rose by 0.4 percent for November. Despite that energy prices declined slightly, other areas of the economy are showing improvement which is a clear sign of positive sentiment by consumers. The Fed has wanted inflation to increase and it seems that it is beginning to occur, actually faster than anticipated. Unemployment continues to remain at very low levels.

Leading into the holiday weekend, the Bond Market will close at 2:00PM next Friday.

Next week’s potential market moving reports are:

 

  • Thursday December 22nd – First Time Jobless Claims & FHFA House Price Index
  • Friday December 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.

 

What happens in Vegas doesn’t necessarily stay in Vegas!

What happens in Vegas doesn’t necessarily stay in Vegas!

Last week I escaped to Vegas with my sisters and their husband’s for a few days. I’m not the gambling type, but we had a blast! The sisters went off shopping, while the boys went off beer tasting.

It so happened the NFR (National Finals Rodeo) was in town, so the cute cowboys were everywhere. 🙂

On Saturday night, we celebrated my sister’s birthday at Giada’s restaurant. To say the food and experience was absolutely amazing would be an understatement. Our booth overlooked the strip, perfectly positioned to watch the water show at Bellagio every 30 minutes.

There wasn’t one single item that wasn’t absolutely delicious! We were told that Giada tends to pop in unexpectedly, but unfortunately she didn’t that evening. Boo.

We ate and laughed for over 3 hours. What a memorable and magical night!!

Here’s a picture of us as Giada’s and us girls in the Paris hotel.

 giadas

vegas

 

Always make amazing memories!

Onto the market update…

The pace of rates rising has slowed, but they are continuing higher. Investors are pulling money from bonds and putting them into stocks as they believe that President Elect Trump’s policies will be great for business. Good news for business means great news for stocks, 401K’s, IRA’s, etc… Along with all of this belief about growth, comes the need for investors to remove money from bonds which lose value with in an increase in inflation, which will likely occur with economic expansion.

The Fed begins their December meeting this coming Tuesday. Based upon every survey of investors, analysts, and anyone else who watches the markets, it appears to be a forgone conclusion that rates will be raised. Recent economic data and labor market reports show strength in the economy and therefore the Fed will likely feel comfortable lifting interest rates. The anticipated increase is only .25%. Anything more than that would likely have a negative impact in the economy.

In great news for the housing market, existing home sales have reached the highest point since the meltdown of 2008. The latest data shows:

Applications for home purchases increased slightly, while refinance applications head down. As expected with the recent increase in home loan rates, the benefits for homeowners to refinance is virtually eliminated, unless they are looking to pull equity from their home. However, the jump in rates has lit a fire under buyers. The Mortgage Bankers Association of American reported that applications for home purchase loans jumped 0.4 percent while refinances declined 1.0 percent for the week of December 2nd.

Last week the Labor Department reported that employment conditions continue to improve. The latest numbers for November were an increase in non-farm payrolls by 178,000. This was 8,000 more than the average anticipated increase. Shockingly, the unemployment rate dropped .3 percent down to 4.6 percent. At this point, the economy is considered essentially fully employed. There will always be a segment of the population that is not working, however those reasons are typically not economy related.

Following up from last week’s monthly employment report, first time jobless claims for the week ending December 2nd reinforce that’s the labor market is likely to remain strong for quite some time. The latest claims were reported at 258,000 which is well below the 300k benchmark.

Finally, there have been many headlines related to the agreement with OPEC to cut oil production in an attempt to raise prices. Oil producing nations have been struggling financially because of low oil prices and they are now trying to increase them by agreeing to slow production and eliminate the world’s surplus. Prices are now over $50 a barrel, however it is likely they will not increase much more.

Next week’s potential market moving reports are:

 

  • Tuesday December 13th – FOMC Meeting Begins
  • Wednesday December 14th – MBA Applications, FOMC Announcement and Forecasts
  • Thursday December 15th – First Time Jobless Claims and Consumer Price Index
  • Friday December 16th – Housing Starts

 

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.

 

Last week I ran away…

Last week I ran away…

Last week I ran away… well sort of. I went on vacation for the first time in 5 years. Not something I’m proud of, as vacations are necessary for balance. It’s just tough to get away, especially in an industry like mortgage lending!

I took my son and niece to Yosemite! We had a blast ziplining, hiking and just taking in the beauty.

The weather was warm, but beautiful, and the crowds were manageable, as school was in back in session for most.

Here’s a few pictures:

yosemite

zipline

Note to self: take more vacations, even if for a few days. It’s good for the soul.

Onto the market update…

New Home Sales: Trying to chart the trajectory of new home sales can prove challenging. For the month of July, sales rocketed up 12.4 percent to a 654,000 annualized rate. This however follows June’s modest report that was revised downward by 10,000 to 572,000 annually. Up or down, we just don’t seem to see a clear path as to which direction the market is going.

It appears that the jump in sales is being driven by builders offering pricing discounts as the median price fell by 5.1 percent. What appears odd in the report is that prices have declined despite the fact that inventory has declined as well. It would be expected that with inventories dropping to 4.3 months from 4.9 months, this would create upward movement in pricing, versus the opposite which is being seen.

FHFA House Price Index: The FHFA HPI appears to reinforce the data from the new home sales report that home sales are moving higher with increasing seller incentives and discounts. For the second straight month the index is up, although a meager 0.2 percent. Currently, prices are 5.6 percent higher than the same time last year. In March and April, the difference between this year and prior year prices were 6.3 percent and 6.0 percent. It is clear that price momentum is slowing.

Mortgage Rates and Applications: The data from the Mortgage Bankers Association of America continues to point to slowing activity for home purchases. For the week ending 8/19, the data shows a slight decline in purchase applications of 0.3 percent. This follows the prior report of a 4.0 percent drop. Refinances have also been slowing for the second consecutive week by 3.0 percent. This follows the previous week decline of 4.0 percent. Applications compared to the same time last year remain higher by 8.0 percent.

First Time Jobless Claims: It is getting to the point that writing about first time jobless claims is like a broken record. Once again the claims remain at a very healthy rate of 261,000. This is a slight drop from the prior week’s 265,000 and remains well below the artificial threshold of 300K.

The Fed and Interest Rates: Traders appear to be thinking that the odds of the Fed raising interest rates in September are rising. The latest surveys show that about 1/3 of investors believe that a September rate hike will occur. Although this is all speculation, many investors will be focused on Fed Chair Janet Yellen’s comments in her speech at the monetary policy symposium in Jackson Hole, Wyoming to try and get a better gauge of the Fed mindset for their next meeting.  

Next week’s potential market moving reports are:

 

  • Monday August 29th – Personal Income and Outlays
  • Tuesday August 30th – S&P Case-Shiller HPI & Consumer Confidence
  • Wednesday August 31st – MBA Mortgage Applications, ADP Employment Report, Pending Home Sales, and EIA Petroleum Status Report
  • Thursday September 1st – First Time Jobless Claims, ISM Mfg Index & Construction Spending
  • Friday September 2nd – National Employment & Factory Orders

 

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.

 

Your market update!

Interest Rates: As expected, the Fed did not move interest rates higher at their meeting this week. Despite the fact that the June employment report was quite strong, there were still lingering effects from May’s dismal employment numbers. It is seen in the Fed minutes the words “strengthened” to describe the labor market and “growing strongly” in respect to household spending. The report is somewhat optimistic about the economy given that job growth and consumer spending remain strong. This may be enough for the Fed to raise interest rates in September. On the flip side, some policy makers are speaking in a tone we have heard for a long time, in which they are saying rates will remain low for some time.

Mortgage Rates: The combination of interest rates rising slightly has once again shown how sensitive borrowers are to rate movements. Refinance volume, which is the most responsive to rate changes, declined 15.0 percent for the week ending July 22nd. Purchase applications moved lower by 3.0 percent, which may also be tied into the normal housing slowdown which often begins to occur moving into late summer.

S&P Case-Shiller Home Value Index: Home prices are softening which appears to be having a positive impact on sales. According to the Case-Shiller Index home prices declined 0.1 percent for the month of May. Analysts were expecting an increase ranging from 0.3 percent all the way up to 1.3 percent.

Additionally, there was a significant revision to April’s numbers. After originally being reported as a gain of 0.5 percent, the report was revised downward showing a decline of prices by 0.2 percent. Prices compared to the same time last year are up 5.2 percent. New Home Sales: This housing sector continues to show strength as sales continued to increase in June. The latest report shows new homes are selling at an annualized pace of 592,000. This is higher than the previous month’s upward revision from 551K up to 572K.

The increase in sales did not occur at the expense of prices. Median home prices increased to $306,700, which reflects a 6.2 percent rise. Overall, new home prices are higher by 6.1 percent from the same time last year.

Pending Home Sales: This sector of the housing market unfortunately has been the weakest area as of late. Pending sales increased only 0.2 percent for the month of June. Sales compared to the same time last year are up only 1.0 percent.

First Time Jobless Claims: Claims for the week ending July 23rd moved up slightly from 252K to 266K. Overall the pace of claims remains healthy and there appears to be stability in the job markets. Next week’s potential market moving reports are:

Monday August 1st – ISM Manufacturing Index and Construction Spending

  • Tuesday August 2nd – Personal Income and Outlays
  • Wednesday August 3rd – MBA Mortgage Applications and ADP Employment Report
  • Thursday August 4th – First Time Jobless Claims and Factory Orders
  • Friday August 5th – 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.

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.

 

My thoughts on the world events…

I’ve sat here staring at this page for some time now, trying to put into words my thoughts and feelings about what is happening in our world lately.

So much evil, so much destruction, so much sadness.

We can’t live in fear, yet the events that continue to ripple through our world takes me to my knees. It has to stop, but how? I’m not going to start a political rant, nor am I going to discuss gun control. This serves no purpose.

But, here’s what I will discuss…what I have control over. I have control over my behavior, my thoughts, my feelings, my actions. Each and every day I try my best to be my best. I try to improve the lives of others in my personal and work life. I try to keep my emotions in check, especially when I hear of these horrific events. (Otherwise, I would be a puddle of mush.)

I will continue to pray for the answer, the healing, and the well-being of this world.

Here’s what I won’t do- let the actions of a few, cowardly, sick individuals take over my heart and mind. I truly believe the world is filled with good, caring and compassionate people. They (we) are the majority and we need to stay focused on this.

Please understand, I am not suggesting we ignore these tragic events. Quite the contrary, I am suggesting we try even harder to inspire, support and help heal those around us. This is what I can control and this helps me heal.

I wish you peace, strength and healing in your walk of life.

Onto the market update…

The Market:

Investors appear to have moved on from Brexit and are feeling more confident. The stock market is up almost 300 points for the week and there seems to be little chatter on the newswires about Brexit. Ever since the European countries committed to doing whatever is necessary to stabilize the markets during Great Britain’s exit, markets around the world have remained calmer.

Mortgage Rates:

With last week’s continuing decline in mortgage rates, refinance applications jumped 11.0 percent according to the Mortgage Bankers Association of America. Purchase applications remained unchanged, possibly indicating that home sales are flattening. Reasons for the lack of movement may be due to the typical summer slowdown as well as the lack of available inventory in many parts of the country.

Labor Market:

June’s impressive employment report showing an increase in payrolls of 287,000. This seems to be striking a nice balance for investors between returning optimistic to the job market, and not being strong enough for the Fed to take action on interest rates. The markets tend to love status quo.

First Time Jobless Claims:

Claims for the week ending July 9th showed no change. 254,000 has been the number for the last two reports and this remains well below the 300K level which typically sets the “concern” alarm for investors.

EIA Petroleum Report:

It appears that production of oil is once again rising. Price of a barrel of oil has dropped down to about $45 and oil reserves have increased. Although consumption has remained high, it is clear because OPEC has not achieved agreement on production and most countries are delivering as much oil to the market as possible.

Inflation:

Prices on the wholesale level have been increasing at a rate of 0.5%. This pace is moving closer to what is considered a healthy indicator of economic stability and growth. Although not quite where we need to be, the recent increase in prices on the wholesale and retail level are positive.

Next week’s potential market moving reports are:

 

  • Monday July 18th – Housing Market Index
  • Tuesday July 19th – Housing Starts
  • Wednesday July 20th – MBA Mortgage Applications
  • Thursday July 21st – First Time Jobless Claims, Existing Home Sales, and FHFA HPI
  • Friday July 22nd – PMI Manufacturing 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.