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Weekly Inside Lending Newsletter – Great Info on Today’s Market

<span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >Weekly Inside Lending Newsletter – Great Info on Today’s Market</span>

QUOTATION OF THE WEEK
“You can learn many things from children. How much patience you have, for instance.” –Franklin P. Jones, American journalist

INFO THAT HITS US WHERE WE LIVE
The first good news was that Existing Home Sales rose 1.1% in March to a 5.60 million annual rate. Yeah, they were down a tick from March 2017, but that month had the second highest sales pace last year.

Then, March New Home Sales also surprised to the upside, gaining 4.0%, to a 694,000 annual rate. Sales are 8.8% ahead of a year ago, posting the second highest sales pace since 2007.

Freddie Mac’s chief economist noted, “Despite the increase in borrowing costs, demand… remains solid. The Mortgage Bankers Association reported… activity was up 11% from a year ago.”

REVIEW OF LAST WEEK
>> Review of Last Week

LITTLE CHANGE… Investors keep balancing optimism about corporate earnings and economic growth against worries over rising interest rates and whether growth will continue. By Friday, worriers barely prevailed, the S&P 500 ending flat, the Dow and Nasdaq down slightly.

We’re right in the middle of first quarter earnings season and 80% of the S&P 500 companies reporting bested forecasts (though that didn’t necessarily boost share prices).

Q1 GDP slipped to 2.3% (Advance read), but that beat estimates, and real GDP is still up 2.9% from a year ago. Jobless claims fell to their lowest level since 1969, while Michigan Consumer Sentiment came in higher than expected once again.

The week ended with the Dow down 0.6%, to 24311; the S&P 500 flat, at 2670; and the Nasdaq down 0.4%, to 7120.

Bonds edged up as investors feared weak growth in France and the UK might be contagious. The 30YR FNMA 4.0% bond ended UP .12, at $101.81. Still low by historical standards, the national average 30-year fixed mortgage rate continued up in Freddie Mac’s latest Primary Mortgage Market Survey. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.

DID YOU KNOW?
The Census Bureau reports homeownership held steady in Q1 2018, but rental households fell for the fourth straight quarter, “a strong sign households are making the switch from renting to buying,” according to one prominent economist.

This Week’s Forecast
March Pending Home Sales are predicted up, while two factory reads, the Chicago PMI and ISM Index, are forecast in solid growth territory. Most important to housing, jobs are expected up, with new Nonfarm Payrolls back near 200,000, and Hourly Earnings rising. Core PCE Prices inflation should be quiet, and quieter still will be the Fed’s FOMC Rate Decision: no hike.

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