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Real Estate Lending News

  • Rising rates aren’t hurting demand in this week’s Markets in a Minute!

     

     

     

    For the Week Ending May 18, 2018
     

    The Economy:

    The economy is humming along when it comes to manufacturing and corporate profits. Most of the benchmark corporations like Alphabet (the parent company of Google) Apple, etc… all reported profits higher than expected.
    Consumer spending remains strong and unemployment remains at an all-time low. The labor market continues to have far more jobs available than people willing, or qualified to fill them. Consumer spending continues to rise.

     

    Housing Starts:

    Despite the upbeat reports on the economy, the latest housing data may have put a wrinkle on the picture of the brightening economy. Housing starts declined unexpectedly by 3.7 percent in April to the lowest rate since December. The one factor of stability in the report is that single-family homes only dipped 0.1 percent. Apartment construction is where the decline is most notable with a drop of 12.6 percent. The silver-lining is that the starts of single-family homes are up 10.5 from this time last year.

     

    The Housing Market Index:

    Despite the decline in housing starts, confidence of home builders remains strong. The Housing Market Index moved higher in May to a level of 70 vs a downwardly revised index of 68 for April. Confidence in the current sales pace is where the index got its lift. The measure of buyer traffic visiting new construction sites remained the same for the third month in a row. First time buyers seem to be the largest missing component from buyer activity in new construction.

     

    Mortgage Financing:

    Mortgage financing declined once again for the week ending May 11th. Mortgage rates inched higher last week which resulted in a 2.0 percent decline in purchase loan activity. Refinances dropped 4.0 percent. Not be a pessimist, but we are likely to see a further decline in applications next week given that mortgage rates rose even more this week. The next MBA report is due out on Wednesday.

     

    Inflation and Interest Rates:

    Bond yields continue to rise which is causing mortgage rates to do the same. The benchmark 10YR bond rose over 3.0 percent this week which was considered a major line to cross for interest rate trends.

     

    Next week’s potential market moving reports are:

    • Tuesday May 22nd – Richmond Fed Manufacturing index
    • Wednesday May 23rd – MBA Mortgage Applications, New Home Sales, FOMC Minutes
    • Thursday May 24th – First Time Jobless Claims, FHFA House Price Index, Existing Home Sales

    • Friday May 25th – Durable Goods 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 enjoy this quick update on what happened this week in the housing and financial markets.

     

     

    Retail sales rose 0.3% in April, matching expectations. Consumer spending is also picking up, but higher gas prices are cutting into discretionary spending.
    The increase in sales and spending is driving investors’ concerns about increasing inflation. These concerns have helped push mortgage rates higher.
    Although jobless claims were slightly higher last week at 220,000, the number of people on unemployment rolls fell to the lowest level since 1973.

     

    Home builder confidence rose in May, according to the NAHB. Low unemployment and strong demand have builders looking favorably on the market.
    However, housing starts were down slightly in April from March. Lumber costs and difficulty hiring as many workers as needed are contributing factors.
    Rising rates don’t seem to be affecting demand for housing. Although mortgage applications fell slightly last week, the decline was mostly for refi applications. 

    I get plenty of exercise—jumping to conclusions, pushing my luck, and dodging deadlines.

     

    Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These
    rate trends can differ from our own and are subject to change at any time.

    Sincerely,

    Fred Kreger
    American Family Funding
    Certified Mortgage Consultant
    NLMS # 1850 / 214640 BRE# 01215943 / 01371184
    (661) 505-4311
    Fred.Kreger@affloans.com
    28368 Constellation Road
    Suite 398
    Santa Clarita, CA
    91355

    www.fredkreger.com

     

    ©2017 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown
    do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products
    may not be available in all states and restrictions apply. Licensed by the Department of Business Oversight under the CRMLA.

     

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  • How does your cost of living compare

     

    It seems like everything’s always getting more expensive, doesn’t it?

    Click here
    to compare your area’s average cost of living to the national average. You’ll find an overall comparison, plus results in different categories.

    I hope you find this information interesting. If I can ever answer home financing questions or offer assistance, please reach out.

     

     

     

    Sincerely,
    Fred Kreger
    American Family Funding
    Certified Mortgage Consultant
    NLMS # 1850 / 214640 BRE# 01215943 / 01371184
    (661) 505-4311
    Fred.Kreger@affloans.com

    28368 Constellation Road
    Suite 398
    Santa Clarita, CA
    91355
    www.fredkreger.com

     

    ©2017 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions apply. Licensed by the Department of Business Oversight under the CRMLA.

     

     

     

     

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  • Inflationary pressures easing in this week’s Markets in a Minute!

     

     

     

    For the Week Ending May 11, 2018

    Employment:

    Since last week there has been a lot of talk about the latest unemployment report. The rate of unemployment hit a 17-1/2 year low at 3.9 percent. As eye catching as that number is, when you dig into the data, the report is not quite as rosy as the headline indicates.

    The reason for the decline due less to an increase in hiring, and more on account of people abandoning their search for work and leaving the labor force. Despite the decline, the employment sector is very strong and continues to grow. The reality is that there are far more jobs available than people looking for them. Employers biggest complaints as of late is their inability to find qualified candidates to fill their empty positions.

     

    Mortgage Financing:

    We are now in the 5th straight week of mortgage activity declining. The latest data from the Mortgage Bankers Association shows applications for purchase loans dropped by a slight 0.2 percent. Refinances declined 0.6 percent. Mortgage rates have inched up lately and that can be playing a role of the downward movement in applications. Additionally, purchase applications continue to be held down because of extremely tight housing inventory, which shows no signs of easing any time soon.

     

    What is good news for the housing industry is that a recent report released by the real estate marketplace Zillow, is that the rate of would-be-borrowers getting turned down for mortgage financing is almost half of what it was ten years ago.

     

    Inflation and Interest Rates:

    Although the Fed left interest rates alone after the last meeting, the likelihood of more interest rate increases is growing. The latest data on inflation is showing that the Fed target rate of 2.0 percent annual inflation has not only been reached, but is now being exceeded.

     

    The latest report on wholesale and retail inflation show them now running at an annualized pace of 2.6 percent and 2.5 percent respectively. This now moves the Fed language relating to inflation into the “moderate” category which is basically a guarantee that at the next Fed meeting interest rates will be raised. The Fed will likely increase rates only .25% because despite the pace of inflation increasing, wage growth still remains almost flat.

     

    Next week’s potential market moving reports are:

    • Tuesday May 15th – Retail Sales, Housing Market Index
    • Wednesday May 16th – MBA Mortgage Applications, Industrial Production, Housing Starts
    • Thursday May 17th – First Time Jobless Claims

     

    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 enjoy this quick update on what happened this week in the housing and financial markets.

     

     

    The consumer price index, which measures inflation, was slightly lower than expected in April. Lack of inflationary pressure helps keep rates lower.
    The producer price index was also a bit lower than April’s forecast, another sign of lower inflation pressure. Prices rose 0.1% instead of the expected 0.3%.
    Oil prices continue to rise, hitting the highest levels since 2014. Increasing oil prices could push rates higher.

     

    In response to new tax code limits on property tax deductibility, NJ has enacted legislation to let homeowners declare property taxes as charitable donations.
    Could more inventory start hitting the market? In a recent FannieMae survey, 45% of respondents said it’s a good time to sell, a new survey high.
    Amazon’s Alexa system is gaining ground in powering smart homes. New home builder Lennar announced plans to include the technology in all new homes.

    Never criticize someone until you have walked a mile in their shoes. That way, when you criticize them, you’ll be a mile away and you’ll
    have their shoes.

     

    Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These
    rate trends can differ from our own and are subject to change at any time.

    Sincerely,

    Fred Kreger
    American Family Funding
    Certified Mortgage Consultant
    NLMS # 1850 / 214640 BRE# 01215943 / 01371184
    (661) 505-4311
    Fred.Kreger@affloans.com
    28368 Constellation Road
    Suite 398
    Santa Clarita, CA
    91355

    www.fredkreger.com

    ©2017 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown
    do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products
    may not be available in all states and restrictions apply. Licensed by the Department of Business Oversight under the CRMLA.

     

     

    Read more
  • Rates rise in this week’s Markets in a Minute!

     

     

    For the Week Ending April 27, 2018

     

    This week housing has been the main focus for economic data. With a number of significant reports being released, the data for the most part, points continued strength in the housing market with little sign of demand softening.

     

    Existing Home Sales:

    Existing home sales grew for the second month in a row in March. Current sales are running at an annualized rate of 5.60 million, which is 1.1 percent higher than the previous month. Housing inventory shortages throughout the country continue to keep existing home sales below the level from the same time last year. Home affordability is beginning to become a concern for the future of the market. Currently there is more than enough pent up housing demand to keep things moving, however with interest rates continuing to rise, concern is increasing that housing demand could soften in the coming months.

     

    S&P Corelogic Case-Shiller HPI:

    The strength in home prices continues. The latest data show prices with an annualized gain of 6.3 percent for the month of December. The prior months spread was 6.1 percent, which indicates the possibility that the rate of home appreciation is accelerating. Housing inventory shortages continue to remain a significant factor in rising home prices.

    Federal Housing Finance Agency House Price Index: The FHFA report shows similar findings for home prices as the Corelogic data. Home prices rose 0.6 percent in January. Although this is a slight decrease from the prior months 0.8 percent rise, the latest data shows
    home prices in February are higher by 7.2 percent from the same time last year.

     

    New Home Sales:

    Sales of new homes rose in March by 4.0 percent. This increase follows February’s upwardly revised report. This latest report is consistent with the solid builder confidence reports which have been released over the last few months.

     

    Next week’s potential market moving reports are:

    • Monday April 30th – Pending Home Sales
    • Tuesday May 1st – Construction Spending, ISM Manufacturing Index
    • Wednesday May 2nd – MBA Mortgage Applications, ADP Employment Report
    • Thursday May 3rd – First time Jobless Claims, Factory Orders
    • Friday May 4th – 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 enjoy this quick update on what happened this week in the housing and financial markets.

     

     

    Concerns over inflation and a spike in Treasury yields drove rates up this week. The 10-yr Treasury broke the 3% yield mark for the first time since 2014.
    While inflation is growing domestically, lack of inflation is still a concern overseas. The ECB is continuing economic stimulus, helping to keep rates lower
    here.
    Consumer confidence rebounded in April, pointing to underlying strength in the economy. Strong confidence is likely to fuel an increase in consumer spending.

     

    New home sales, which account for 11% of the housing market, increased 4% in March. That’s an 8.8% increase from a year ago, a big jump.
    Home prices continue to surge, even as mortgage rates rise. Home values jumped 6.3% in February over the previous year, according to Case-Shiller.
    The number of homeowners benefitting from the mortgage tax break is expected to drop by half in 2018. Only about 20% of all taxpayers have used the break
    in recent years.

    Anything that could possibly go wrong often does—as well as a thing or two that couldn’t possibly.

     

    Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These
    rate trends can differ from our own and are subject to change at any time.

     

    Sincerely,
    Fred Kreger
    American Family Funding
    Certified Mortgage Consultant
    NLMS # 1850 / 214640 BRE# 01215943 / 01371184
    (661) 505-4311
    Fred.Kreger@affloans.com
    28368 Constellation Road
    Suite 398
    Santa Clarita, CA
    91355

    www.fredkreger.com

     

    ©2017 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown
    do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products
    may not be available in all states and restrictions apply. Licensed by the Department of Business Oversight under the CRMLA.

     

     

     

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  • Let’s consider ways to save money on your home loan

    Understanding options for your mortgage can be the key to saving thousands during the time you own your home.

     

    Here’s an easy-to-use tool to help you compare up to four loan options. Simply adjust the variables, then with the click of a button or a tap on your phone, we’ll show you what to expect for a monthly payment and
    your total cost over 10 years.

     

     

    I hope you enjoy experimenting to see where you might save. Please remember that any actual loan terms are subject to approval. If you’d like to explore your options further, please reach out. I’ll be happy to help.

    Sincerely,

    Fred Kreger, CMC
    American Family Funding
    Certified Mortgage Consultant
    NLMS # 1850 / 214640 BRE# 01215943 / 01371184
    (661) 505-4311
    Fred.Kreger@affloans.com
    28368 Constellation Road
    Suite 398
    Santa Clarita, CA
    91355

    www.fredkreger.com

     

    ©2017 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown
    do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products
    may not be available in all states and restrictions apply. Licensed by the Department of Business Oversight under the CRMLA.

     

     

     

    Read more
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