(661) 284-1150 | 28368 Constellation Road | Suite 398 | Santa Clarita, CA 91355

Home

fred kreger real estate lending news

Real Estate Lending News

  • Home prices breaking records in this week’s Markets in a Minute!

     

     

    For the Week Ending August 18, 2017

    The Stock Markets

    After a 271% rise in the stock market, rumbles of concern that it may be overpriced are starting to be heard on Wall Street. Many experts are expressing concern that the valuations are not warranted and that a correction
    may be forthcoming.

     

    Thursday’s decline of 274 points was blamed primarily on concerns over the terrorist attack in Barcelona. However, many investors commented that they believe the size of the decline was exacerbated by the underlying
    concerns about how much the market has risen since the last correction.

     

    Mortgage Bankers Association Loan Application Weekly Data

    Purchase applications for home mortgages decreased a seasonally adjusted 2.0 percent for the week ending August 11th. For mid-August, purchase application increases or decreases within a few percentage points, week
    to week, are essentially indicative of a flat market. The good news is that purchase apps are higher by 10% from the same time last year. With mortgage rates continuing to remain low, refinance applications rose 2.0 percent. Refinancing increased by 1.1 of
    all mortgages to a level of 47.8 percent of all loans being financed.

     

    Housing Starts

    Housing starts unexpectedly declined to a lower than expected annualized 1.155 million. The current rate is now back to the same levels as March and April of this year. It is too early to determine, however there
    are signs that the final trend for 2017 might end up being lower than the prior year. On the positive side, there continues to be commentary that the Fall real estate market may bring stronger than normal due to the pent-up demand from a consistent lack of
    available inventory. The one thing to watch is what happens both domestically with President Trump policies, as well as any geo-political events, such as Thursday’s act of terrorism in Barcelona.

     

    Housing Market Index

    This index, which is comprised of feedback from the National Association of Home Builders which provides a rating of the general economy and housing market conditions, delivered an upside surprise this week. The
    latest reading was up by 4 points which was better than analyst’s expectations. The current level of the index indicates positive sentiment of the nation’s home builders on the future of the economy and housing.

     

    Next week’s potential market moving reports are:

    • Tuesday August 22nd – FHFA House Price Index
    • Wednesday August 23rd – MBA Mortgage Applications, New Home Sales
    • Thursday August 24th – First Time Jobless Claims, Existing Home Sales
    • Friday August 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.

     

     

    In July, retail sales recorded their biggest increase in 7 months. Consumer spending rose at a 2.8% annualized rate in the second quarter.
    Regardless of the strong data, inflation continues to be soft, a concern to Fed members. Weak inflation supports low rates, including mortgage rates.
    Minutes released from the Fed’s last FOMC meeting show members are concerned about the lack of inflation, making a near-term rate increase unlikely.

     

    Rising demand for new homes drives builder confidence. Homebuilder sentiment rose 4 points to 68 in August, its highest level since May.
    Although demand was higher, construction of new homes fell 4.8% in July. Building permit numbers were also down, as labor and material prices increase.
    Home prices keep rising. Median prices in the 2nd quarter eclipsed a record high set in 2016. Prices for single family homes rose in 87% of national markets.

    My friend said to me, “What rhymes with orange?”

    I said, “No it doesn’t.”

     

    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
  • Here’s this week’s Markets in a Minute!

     

     

    For the Week Ending August 11, 2017

    The Stock Markets

    It has been a while since any vulnerability to the rising stock indices has existed. Economic data continues to remain strong and shows little sign of weakening. Geopolitical concerns over North Korea’s nuclear capabilities
    have been taking center stage all week on the news channels and the concerns are starting to show up in investor decisions with more money flowing into the bond market.

     

    Mortgage Bankers Association Loan Application Weekly Data

    Purchase applications for home mortgages increased a seasonally adjusted 1.0 percent for the week ending August 4th. Applications for refinances jumped 5.0 percent with the recent slight decline in rates. As mentioned
    in the previous section, concerns on the international fronts have investors starting to remove money from stocks and placing funds in bonds as a hedge against market uncertainty.

     

    The housing market continues to remain ahead of last year. From the same date a year ago, the purchase index is up by 7.0 percent. The refinance portion of mortgage financing increased by 1.2 percent to represent
    46.7 percent of all mortgage financing. Mortgage rates for the week declined by 3 basis points, which appears to be enough to stimulate a few more refinances.

     

    Job Openings and Labor Turnover Survey (JOLTS)

    Once again it is clear that there is a significant shortage of qualified candidates to fill the job openings that currently exist. For the month of June job openings rose sharply to 6.163 million. This is up from
    the prior month’s 5.702 million. Hiring has been struggling as the filling of these available positions declined sharply by 103,000. Although this index can be quite volatile, the recent data points to significant tightness in the labor market. Additionally,
    despite all the job openings, the reduction in hires is an indicator that many employers want to fill open positions, but they remain against paying significant wage increases to attract the help.

     

    Noteworthy News

    The airline industry, which is not known for stellar customer service, is dipping it toes into the water of two-way texting with customers. Up until now, airlines only offered text communication one-way, from airline
    to passengers, typically related to gate change announcements and flight schedule changes or delays.

    Hawaiian Airlines and Jetblue have begun a service (albeit it is in the testing phase) that allows passengers to communicate with customer service staff via text. Passengers can even complain via text. This should
    be interesting to see what happens in the coming months as the airline industry is notorious for not listening.

     

    Next week’s potential market moving reports are:

    • Tuesday August 15th – Housing Market Index
    • Wednesday August 16th – MBA Mortgage Applications, Housing Starts, FOMC Minutes
    • Thursday August 17th – First Time Jobless Claims, Industrial Production
    • Friday August 18th – 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 enjoy this quick update on what happened this week in the housing and financial markets.

     

     

    Producer prices fell in July, recording their biggest drop in 11 months and pointing to lower inflation. The lack of inflation could help keep mortgage rates
    low.
    Geopolitical tensions between the U.S. and North Korea have caused stocks to lose ground. Traders have moved to bonds for safety, helping mortgage rates.
    Jobless claims below 300,000 continue to show labor market strength. However, it’s not likely the Fed will raise rates until inflation increases.

     

    Mortgage applications rose 3% last week. While refinance apps were up 5%, purchase apps were also up 1% compared to the previous week.
    Three projects found to have highest ROI for adding value to a home were: fixing window leaks; remodeling the basement or a bathroom; and better insulating
    the attic.
    Corelogic reports that May’s number of delinquent mortgages was at the lowest level in nearly a decade. Foreclosure inventory was also much lower.

    “Why is it that I always catch you goofing off?!” asked the boss.

    The employee replied, “That’s easy. It’s because you walk so quietly!”

     

    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
  • Spending was up but inflation wasn’t in this week’s Markets in a Minute!

     

     

    For the Week Ending August 4, 2017

    Pending Home Sales

    After three consecutive monthly declines, the pending home sales index turned around and jumped by a much stronger than anticipated 1.5 percent in the month of June. The housing market struggled through the Spring
    season but the latest data shows promise for the existing home sales data coming in later this month. With mortgage rates continuing to remain low, this holds promise that the second-half of the year can end up being a much stronger housing market than normal.

     

    Mortgage Bankers Association Loan Application Weekly Data

    With mortgage rates remaining steady for the week, applications for purchases and refinances declined slightly. The seasonally adjusted move in activity were purchase applications went down by 2.0 percent whereas
    refi’s dropped by 4.0 percent. Overall the purchase index is up by 9.0 percent from the same time last year. Purchase applications represent 55.5 percent of loan activity according to the Mortgage Bankers Association.

     

    Construction Spending

    Surprisingly, the June construction spending report declined 1.3 percent. This is a reversal from the prior month’s revised increase of 0.3 percent. It appears that spending in this sector moved in a similar fashion
    to the latest data in personal income and outlays released on Tuesday morning.

     

    Single-family residential construction spending increased 0.3 percent. Multi-family headed in the opposite direction with a decline of 0.2 percent. When looking at the latest data, it is always important to note
    that the bulk of the weight is placed on the single-family sector as that is a much closer measure to how the housing market is performing. Year on year growth for single-family construction spending is up 9.0 percent. Multi-family spending is higher by only
    0.6 percent.

     

    First Time Jobless Claims, Factory Orders, Manufacturing

    Even with the seasonal retooling in the automotive industry, first time jobless claims remain extremely low at only 240,000 for the week ending July 29th. Typically for this time of year, a jump in claims is seen
    with auto-manufacturers laying off workers while they retool their assembly plants for the change in car model year.

     

    Factory orders jumped 3.0 percent for June. Higher than expected aircraft orders played a major role in the increase. Manufacturing continues to show great strength with a reading of 56.3.

     

    Next week’s potential market moving reports are:

    • Monday August 7th – Labor Market Conditions Index
    • Tuesday August 2nd – Job Openings and Labor Turnover Report (JOLTS)
    • Wednesday August 3rd – MBA Mortgage Applications
    • Thursday August 4th – First Time Jobless Claims, Producer Price Index
    • Friday August 5th – Consumer Price 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 enjoy this quick update on what happened this week in the housing and financial markets.

     

     

    Consumer spending rose slightly in June, but there was little sign of inflation as personal consumption expenditures barely moved. No inflation is good for
    rates.
    The already strong labor market continues to tighten, with fewer jobless claims and layoffs last week. Claims have now been below 300,000 for 126 weeks.
    Construction spending fell unexpectedly in June, mainly due to a drop in public projects. Private residential construction was down only 0.2% in June.

     

    Mortgage applications fell slightly this week, down 2.8%. However, purchase applications were 9% higher than the same week a year ago.
    Pending home sales were up in June, after 3 straight monthly declines. NAR’s Pending Home Sales Index jumped 1.5%, double economists’ expectations.
    The housing market remains constrained by a shortage of properties for sale. Homebuilders struggle to fill the gap, citing higher costs and labor shortages.

    To the optimist, the glass is half full.

    To the pessimist, the glass is half empty.

    To the underwriter, it doesn’t really matter. You just need to provide the receipt for when you bought the glass.

     

    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
  • Fed leaves rates alone in this week’s Markets in a Minute!

     

     

    For the Week Ending July 28, 2017

    Existing Home Sales

    The recent decline in pending home sales, translated into a decline in existing home sales. The latest data showed a drop of 1.8 percent for the month of June. Compared to the same time last year, existing sales
    are up 0.7 percent.

     

    On the flip-side, home prices are up a sharp 6.5 percent from a year ago. The latest median home price is $263,800. The supply of homes continues to remain a big challenge in many markets throughout the country.
    Supply dropped 0.5 percent in June which places the national average at 4.3 months. The most notable concern relating to home availability is that supply is 7.1 percent lower than the same time last year.

     

    Mortgage Bankers Association Loan Application Weekly Data

    After last week’s large jump in refinances, it seems that the little upward movement in rates has quelled the brief refi excitement. The latest numbers reported from the Mortgage Bankers Association is that refinances
    only increased 3.0 percent for the week ending July 21st. Purchase applications declined a minimal 2.0 percent for the same week. The good news in the latest report is that purchase applications are 8.0 percent higher than the same time last year.

     

    FHFA House Price Index

    The FHFA Index, which measures the prices of single-family homes was up 0.4 percent in May, which is the softest increase since January. However, home prices are up for this index by 6.9 percent from the same time
    last year. This is the biggest year-on-year spread in 3 ½ years.

     

    S&P Corelogic Case-Shiller House Price Index

    The question people are starting to ask is “is home price appreciation slowing?”

     

    Although the existing home sales report showed a strong increase in home prices, the latest Case-Shiller data points to more modest price growth. For the 20 major cities in which the data is based, home prices only
    increased 0.1 percent for the month of May. Expectations were that home prices would be up by 0.3 percent according to the Econoday estimates. Overall home prices are higher by 5.7 percent from last year in the Case-Shiller data.

     

    Next week’s potential market moving reports are:

    • Monday July 31st – Pending Home Sales
    • Tuesday August 1st – PMI Manufacturing Index, Construction Spending, ISM Mfg Index
    • Wednesday August 2nd – MBA Mortgage Applications, ADP Employment Report
    • Thursday August 3rd – First Time Jobless Claims, Factory Orders
    • Friday August 4th – National Employment Report

     

    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 Fed left policy rates unchanged at this month’s FOMC meeting. They did say though that they will begin reducing their balance sheet ‘relatively soon.’
    Traders’ reactions to the Fed’s statement were also positive for mortgage rates. Speculation is the Fed will take gradual action when tightening economic
    policy.
    Inflation continues to come in below the Fed’s desired level of 2% and will be monitored. Low inflation is supportive of lower mortgage rates.

     

    Existing home sales fell more than expected in June, and tight inventory has been blamed. Lack of homes has led to bidding wars and higher home prices.
    However, new home sales increased for the second straight month in June. Also, the inventory of new homes on the market increased 1.1%, the highest level
    in 8 years.
    According to Case-Shiller, major metro area home prices were up 5.7% year-over-year in May. Inventory of existing homes for sale is around 4 months.

    When it comes to work, change is inevitable, except from the vending machine.

     

    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, 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
  • Honor, Courage and Passion to Serve – A NAMB Story

    In Andy Andrews’ novel, The Traveler’s Gift, a great paragraph struck me so profound that I wanted to write about it this month as it relates to NAMB and our members that we serve.

    “Every man (woman) of honor and courage will be faced with unjust criticism, but never forget that unjust criticism has no impact whatsoever upon that truth. And the only sure way to avoid criticism is to do nothing and be nothing.”

    This was a statement made in this fictional book by Abraham Lincoln in the story.  It may have been a fictional statement, but WOW does it leave an impact.

    So many times in my association career (CAMP and NAMB), I have written about the call to service.  I have looked backed and assessed THE WHY.  It can take so many forms for all of us of the “Why We Serve”; The Calling, The Ego, The Spiritual Reward.  No matter the motivation, it moves our association forward.

    This month’s message may sound like it’s from a book of the month club, but reading does inspire me and I hope it does the same for you. While listening to a great Podcast from Brian Buffini as he interviewed the author of Love is the Killer App by Tim Sanders, I was struck by his phrase “Passion of Service”.  We all have had this at one time or another.  We just need the right inspiration to evoke this passion.

    The reason why this is so poignant to me now, is that I am looking back at what WE have done to insure that NAMB and our State Associations are thriving.  I have to tell you….it’s been rough for all of us.  I know that we get distracted and sidelined from our commitment to service.  But I want all of you reading to take a minute and think about your own personal joy of service…taking an hour to be on a committee call or talking to a new potential member.  How did that make you feel?  Harness that feeling. Embrace that action that gave you that feeling.  Make it move you and your association forward.

    This industry has done so much for all of us to allow us financial freedom to buy our first house or have our kids go to college without loans.  Isn’t that a great reward for service?  I think so and I think that all of us need to do that “One More Thing” this year.  We all have some extra time; so squeeze out that time to have that passion for service.

    I’d like to leave you with an excerpt from Theodore Roosevelt’s speech “The Man in the Arena”… The credit belongs to the man who is actually in the arena… who spends himself in a worthy cause…so that his place shall never be with those cold and timid souls who neither know victory nor defeat.

    Thank you and Namaste’

    Fred Kreger, CMC

     

    Fred Kreger is the Vice President of Enterprise Retail Production at American Pacific Mortgage.  He is currently the President for NAMB, the Association of Mortgage Professionals and Past President for the California Association of Mortgage Professionals (CAMP) and He can be contacted at fred.kreger@apmortgage.com or (661) 400-8905.

    Read more
Load More

Subscribe for Blog Updates

Want to receive the latest posts from this blog delivered fresh and piping hot to your email inbox?

Recent Posts

Archives