QUOTATION OF THE WEEK
“It is more fun to talk with someone who doesn’t use long, difficult words but rather short, easy words, like ‘What about lunch?'” –A. A. Milne, English author
INFO THAT HITS US WHERE WE LIVE
Housing Starts were up 1.9% in March, at a 1.319 million annual rate. Yes, the gain was all from the volatile multi-family sector, but single-family starts are up 5.2% the past year and keep driving trend growth.
Building Permits gained 2.5% in March to a 1.354 million annual rate. Single-families dipped here too, but are still up for the year, and the number of them under construction is the highest since the last recession.
Do note, housing gains over the last twelve months have occurred despite higher mortgage rates. In fact, the latest Mortgage Bankers Association survey reports purchase applications up 6% for the week and 10% higher than a year ago.
BUSINESS TIP OF THE WEEK
Rare is the day anyone gets through the whole to-do list, so quit feeling that you’re never doing enough. Instead, feel good about what you accomplish today, to set yourself up for a successful tomorrow.
HANGING IN THERE… This year’s Wall Street theme is volatility, and investors demonstrated it perfectly, sending stock prices up three days, then down the last two. But hey, the three big market indexes finished ahead for the second week in a row.
Negative drivers were geopolitical tensions and worries that rising wages and tariffs would send inflation and interest rates higher. But corporate earnings are strong, and economic growth should gain with lower taxes and higher government spending and business investments.
More evidence of a growing economy came with Retail Sales smartly up 0.6% in March, a healthy 4.5% ahead of a year ago. Plus, manufacturing continues to expand, as Industrial Production and Capacity Utilization went up nicely too.
The week ended with the Dow UP 0.4%, to 24463; the S&P 500 UP 0.5%, to 2670; and the Nasdaq UP 0.6%, to 7146.
U.S. inflation worries hurt bonds, although negative Eurozone data kept investors involved. The 30YR FNMA 4.0%, bond we watch ended the week down .58, at $101.69. In Freddie Mac’s latest Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate hit its highest level since January 2014. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW?
ATTOM Data Solutions reports that owners of single family homes paid more than $293 billion in property taxes in 2017, a 6% increase over the prior year.
This Week’s Forecast
GROWING: HOME SALES, GDP, MANUFACTURING, EMPLOYMENT COSTS… Things economic should continue to look up, including: March Existing and New Home Sales; the Q1 GDP – Advanced read on economic growth; the Chicago PMI index of Midwest manufacturing activity; and the Employment Cost Index, whose gain is good for wages but bad for inflation.
