A cool speaking opportunity…and your market update!

Yesterday I had the coolest experience.

I was invited to speak to a group of young adults (18-24 year olds) that are part of a mentorship program with the Los Angeles Sheriff Department. These individuals come from all walks of life.

LASD brings in guest speakers to touch on various topics, including financial literacy and life skills- that’s where I came in.

What a great group of kids- all hungry for knowledge, with a desire to make a difference! They asked a ton of great questions, were engaging and just a joy to be with! I think I left there happier than they did! A great time was had by all!

If only this type of knowledge could be taught in our school system… I will continue to push. 🙂

Happy weekend!

Onto the market update…

What a difference a week makes. With not much news to trade on last week, this week’s news provided many traders the opportunity to ride the investment and stock rollercoaster. The stock market, through the first 3 days of trading for the week, was up just over 200 points. Thursday the gains were virtually all given back with the Dow’s 195pt loss.

Banking stocks led the way for the market decline. The problems exist on both sides of the Atlantic Ocean. Here at home, Wells Fargo continues to get ripped apart for their practice of opening fraudulent accounts. With each passing day, more investigations into their actions are being launched and the lawsuits are starting to pile up. On the other side of the pond, the solvency of Deutsche Bank is becoming more and more troubling by the day. Combined, these two large entities represent the potential for a major impact to global finances.

New home sales for August came in higher than expected at an annualized rate of 609,000. Although this number is higher than forecast, it represents a decline of 7.6 percent from July. The positive part of the report is that July was revised upward to show a gain of 13.8 percent from June.

According to the Case-Shiller Home Price Index, the price of homes remained virtually unchanged for the month of July. This shows stabilization in the market as the prior 3 month’s reports showed declines. Home prices compared to the same time last year remain 5.0 percent higher. The Pacific Northwest continues to be the strongest real estate market in the country, as demand for housing remains very high while inventory is extremely limited.

Heading into the fall and winter months, concerns for housing are growing. Existing home sales have not been able to gain ground and Thursday’s pending home sales report indicates that future sales are likely to be weak. The latest report on pending sales showed a decline of 2.4 percent for the month of August. 3 of the 4 regions showed declines. Surprisingly, the Northeast was the only positive region with an increase of 1.3 percent. In fact, this region is the only one posting a gain from the same time last year. Limited inventory seems to be the culprit as mortgage rates remain very low and the labor department continues to show strength.

The Mortgage Bankers Association of American reported that applications for home purchases rose a meager 1.0 percent for the week of September 23rd. Refinance applications declined by 2.0 percent. When comparing current purchase application volume to the same time last year, the volume is up 10.0 percent.

Next week’s potential market moving reports are:

 

  • Monday October 3rd – ISM Manufacturing Index and Construction Spending
  • Wednesday October 5th – MBA Mortgage Applications, Factory Orders, and ADP Report
  • Thursday October 6th – First Time Jobless Claims
  • Friday October 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.