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  • Trade concerns helping keep mortgage rates low in this week’s Markets in a Minute!

     

    For the Week Ending June 22, 2018

    The Markets:

    Investors do not like the increased banter and threats relating to tariffs and trade. The stock market has lost all the gains for 2018 and has even dropped into negative territory. The goal of all the tariff talk and actual implementation has been to bring countries to the negotiating table to create more balanced trade agreements for the United States, versus the current one-sided relationships that exist to the detriment of the country. Thus far the strategy is not working, however there is hope that smarter heads will prevail before this trade war creates global turmoil.

     

    Housing Starts:

    Housing starts for May roared to an 11-year high. At an annualized pace of 1.35 million, this is the fastest activity since 2007. The latest pace is 5% higher than April and a whopping 20.3% higher than the same time last year. Although permits were down 4.6 %, this decline pales in comparison to the incredible growth in construction that is happening. Housing starts for residential single-family homes rose to an annualized pace of 936,000, one of the highest numbers of the recent housing cycle.

     

    Existing Home Sales:

    Once again existing home sales are down, but not because of demand. Tight inventory continues to stifle the existing home market. Sales declined by 0.4% from April to May. This is the second straight month of declines as the supply continues to prevent would be buyer from getting that elusive accepted offer.

     

    Median home prices continue to rise. The latest data shows that home prices are rising at an annualized rate of 4.9%. First timers represent 31% of buyers, when historical norms are usually around 40%. Sales in the Northeast rose 4.6%, and this was the only region to show an increase.

     

    Mortgage Application Activity:

    The Mortgage Bankers Association reported that applications for home loans increased 5.1% from the prior week. Applications for purchase loans represent 4% of the increase. Refinances now account for 36.8 percent of mortgage loan activity.

     

    Next week’s potential market moving reports are:

    • Monday June 25th – New Home Sales
    • Tuesday June 26th – Case-Shiller Home Price Index, Consumer Confidence
    • Wednesday June 27th – Pending Home Sales, MBA Mortgage Applications
    • Thursday June 28th – First Time Jobless Claims
    • Friday June 29th – Consumer Sentiment, Consumer Spending

     

    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.

     

     

    Tariffs imposed by President Trump have elicited retaliation from countries around the globe. Concerns about a trade war have helped mortgage rates.
    Fed Chair Powell recently confirmed the case for continuing to raise interest rates remains “strong.” He cited solid economic growth and full employment.
    Jobless claims have fallen for the 4th straight week. Employers are increasingly reporting labor shortages, which are likely to lead to wage growth and inflation.

     

    Home builders are excited by strong demand for housing. However, they are frustrated with labor shortages and rising costs for lumber.
    New housing starts surged to an 11-year high of 1.35 million in May. Both single-family and multi-family home construction increased.
    Existing home sales fell last month, as a shortage of properties pushed prices to a record high. At May’s sales pace, unsold inventory is at a 4.1-month supply.

    Knowledge is knowing a tomato is a fruit; wisdom is not putting it in a fruit salad.

     

    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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  • Fed raises policy rates in this week’s Markets in a Minute!

     

     

    For the Week Ending June 15, 2018

     The Markets and Interest Rates:

    As expected, the Fed announced a ¼% increase in interest rates on Wednesday, for the second interest rate hike this year. Additionally, the Fed stated that their current goal for 2018 is two more interest rate hikes.
    The benchmark federal funds rate is now at 1.75% to 2.00 %. This means that anyone who has a home equity loan, just experienced a .25% increase in their cost of borrowing from their line of credit.

     

    Inflation:

    The Fed’s announcement and decision on raising the fed funds rate ties in right along with the latest data on both wholesale and retail inflation. On Monday the latest data on consumer prices was released for the month of May. This was followed on Tuesday by the May producer price index report. Both reports showed a significant jump in inflation.

    Prices on the consumer level rose a strong 0.2% for the month. Although this increase was in line with most analyst’s expectations, this is the fastest rate of retail price growth in 6 years. Prices on the wholesale level leaped 0.5 % in May. This very large increase was driven by the rising costs of oil and gas. The higher wholesale prices will likely drive prices on the retail level even higher in the coming months, as the costs for the production and delivery of goods and services for manufacturers and wholesalers continue to increase.

     

    Retail Sales:

    The report of the week that caught experts off guard was the May retails sales report. With a much higher than expected jump of 0.8%, this points to a very strong second-quarter GDP report. This increase reflects a strong economy and the high likelihood that the pace of inflation will continue to increase. If this trend continues, it is likely the Fed will raise rates sooner than later.

     

    Mortgage Application Activity:

    The Mortgage Bankers Association reported that applications for home purchase loans decreased 1.5 % from the prior week. Refinance activity declined 2.0%. Refinances stayed the same for the week at 35.6% of total mortgage loan activity. Rising interest rates and limited inventory are the likely reasons for the decline in total loan activity.

     

    Next week’s potential market moving reports are:

    • Monday June 18th – Housing Market Index
    • Tuesday June 19th – Housing Starts
    • Wednesday June 20th – MBA Mortgage Applications, Existing Home Sales
    • Thursday June 21st – First Time Jobless Claims, FHFA House Price Index
    • Friday June 22nd – Baker-Hughes Rig count

     

    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.

     

     

    As expected, the Fed raised policy rates a quarter percent at this week’s meeting. The increase will likely have little impact on long-term mortgage rates.
    The surprise came with the Fed’s statement that two more rate hikes are likely this year. That’s one more than initially projected.
    Strong economic indicators support the rate changes. Jobless claims dropped 4K from last week, and last month’s retail sales were higher than anticipated.

     

    Median priced homes are flying off the shelves, so to speak. A recent industry analysis pinpointed the median listed-to-sale time frame at 64 days, a post-recession
    low. 
    A recent Fannie Mae survey found sellers more positive than buyers. Price increases paired with rising rates are tempering buyer attitudes.
    CoreLogic reports the average U.S. homeowner gained $16,300 in home equity over the last year. Increased equity gives owners more flexibility in selling and
    financing.

    The soldiers were exhausted after an extended time in drills, largely due to one soldier’s consistent errors. Finally,
    the drill sergeant said, “All right! All you idiots fall out!” 

     

    As the rest of the relieved squad wandered away, the mistake-prone soldier remained at attention. The drill instructor walked over, stood face-to-face,
    then raised a single eyebrow.

     

    The soldier smiled and said, “Sure was a lot of ’em, huh, sir?”

     

    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’s adulting going for you? Should you Keep Renting or is it Time to Buy?

     

     

    No matter how old you are, being an adult can be shockingly difficult. Sure, you can decide to eat dessert first, but what’s with all these
    bills to pay?


    And rent payments feel like you’re just handing over your hard-earned cash to a landlord.


    An alternative—buying a home of your own—could be closer than you think.


    This easy calculator will show you how your rent check could look as a mortgage payment instead. As a bonus, you’ll see how low the real cost of owning can go, too.


     

    See? When you put your dollars to work for you, adulting is not half bad. And it’s not too early (or too late) to start.

     

    Reach out, and let’s talk about real numbers for your scenario. You may be pleasantly surprised.

     

    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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  • Lots of overseas action in this week’s Markets in a Minute!

     

     

    https://i.eeoo.co/o/407/Assets/miam_header_Feb_2016.jpg

    For the Week Ending June 8, 2018

     

     

    The Markets:

    Now that the market jitters seem to have subsided relating to Italy, the indices have resumed their upward movement. This week the stock market is up more than
    400 points for the week, with some new records being set. At the present time confidence in the economy is very high. Last Friday’s strong employment report bolstered sentiment that the economy has few headwinds that will cause it to slow down anytime soon.
    This week was light on economic news, and virtually absent of data relating to the housing market

     

    Job Openings and Labor Turnover Report (JOLTS):

    The labor market seems to be very stable from March to April. Job openings were little changed at 6.7 million on the last business day of April, as reported
    by t

    The U.S. Bureau of Labor Statistics. Additionally, new job hires were little changed as well.

     

    Mortgage Application Report:

    In a surprising positive turn, mortgage applications for both refinancing and home purchase increased this past week. The latest data from the Mortgage Bankers
    Association show applications for both types of loans increased 4.0 percent. This breaks the recent downward trend of loan volume. Refinance application increased from 35.3 percent up to 35.6 percent of total mortgage loan applications.

     

    First Time Jobless Claims:

    The latest report shows that claims remained virtually flat from the prior week. At 222,000 for the week ending June 1st, claims remain near historic lows.

     

    ISM Non-Manufacturing Index Report:

    The latest data registered 58.6 percent, which is 1.8 percentage points higher than last month’s April report of 56.8 percent. This once again shows continued
    growth in the non-manufacturing sector, and the pace of growth appears to be accelerating. The Non-Manufacturing Business Activity Index increased to 61.3 percent, 2.2 percentage points higher than the April reading of 59.1 percent, reflecting growth for the
    106th consecutive month, at a faster rate in May.

     

    Next week’s potential market moving reports are:

    • Tuesday June 12th – Consumer Price Index
    • Wednesday June 13th – MBA Mortgage Applications, Producer Price Index, FOMC Announcement
    • Thursday June 14th – First Time Jobless Claims, Retail Sales
    • Friday June 15th – Industrial Production

     

    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.

     

    https://i.eeoo.co/o/407/Assets/FINAL_mortgage_rates_44.png

    https://i.eeoo.co/o/407/Assets/FINAL_rate_volatility_22.png

     

    https://i.eeoo.co/o/407/Assets/Economy_section_head11.png

    https://i.eeoo.co/o/407/Assets/bullet_graphic11.png

    June’s Federal Open Market Committee (FOMC) meeting is next Wednesday. The Fed is widely expected to raise policy rates by 0.250% at this meeting.

    https://i.eeoo.co/o/407/Assets/bullet_graphic11.png

    Mortgage rates have already factored in a Fed rate increase. However, rates are creeping up after geopolitical tensions in Italy have dissipated.

    https://i.eeoo.co/o/407/Assets/bullet_graphic11.png

    The European Central Bank also meets next week. If the ECB announces plans to reduce stimulus, rates could be pressured slightly higher.

     

    https://i.eeoo.co/o/407/Assets/housing_section_head11.png

    https://i.eeoo.co/o/407/Assets/bullet_graphic11.png

    Volatility in mortgage rates from geopolitical tensions helped push rates lower last week. Mortgage purchase applications rose 4.1% week-over-week.

    https://i.eeoo.co/o/407/Assets/bullet_graphic11.png

    Freddie Mac reports that 46% of first-quarter purchase mortgages were to first-time buyers. This marks the largest share recorded, dating back to 2012.

    https://i.eeoo.co/o/407/Assets/bullet_graphic11.png

    Homes in lower price ranges are appreciating faster than more expensive homes. Prices rose 9.3% year-over-year for homes priced 75% or less of the median.

     

     

    https://i.eeoo.co/o/407/Assets/Last_Laugh_section_head11.png

    Want to hear a pizza joke? Nah, it’s too cheesy…

     

    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
    https://i.eeoo.co/c/6132/PictureWeb.jpg

     

    ©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.

     

     


    https://i.eeoo.co/o/1745/Logo2.png

     

    http://url4481.mail.surefire3.com/wf/open?upn=xuNk3-2BDhTcLCDO7Sfs7vOBVCwq8YYRuY7FXEfcPHBbv6xlMSKTlA3roC3gJidnjfcMsXp6tunDECxv3lxKm8ZaLJKEu4Dd-2BbUnUN3TwzSrijq4xxUGb-2BfOAYWz0Lg30f6tyEub620il5sl760KjXCDWHe1OgRydA3OXJ46nkqlie5zUdqt-2BxJ17pofUZPJvl-2BH9-2FknckArDpPa4OMT43t8HbIOEMTuPkQWz9vM4DGig-3D

     

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  • For the 6th straight year, APM has been ranked as a top mortgage lender by the Scotsman Guide.

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