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The economy is booming in this week’s Markets in a Minute!

The economy is booming in this week’s Markets in a Minute!
December 22, 2017 Fred Kreger



For the Week Ending December 22, 2017

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


The Stock Market and Investing:

The reality check has happened. Friday morning Bitcoin investors in the United States woke up to find that the value of the cryptocurrency tanked 18 percent overnight. This is the fourth consecutive day of losses
for virtually all cryptocurrencies. The concerning part is that the latest runup on the electronic currencies was driven by a large portion of people purchasing using credit cards. With all the hype of the increased in values, not only traditional investors,
but people who know nothing about the market jumped in to make purchases in an attempt to ride the wave.


The Housing Market Index:

New home sales surged back in the month of September. Builders are excited, and it is showing in the housing market index. The latest reading showed a much larger than expected 5 point jump in builder confidence.
The big driver of the increase in confidence is the unexpected jump in buyer traffic. It appears that all of a sudden there is a flood of new buyers in the market. One possible explanation is that it may not be so much new buyers, buy possibly buyers who have
given up trying to find a pre-existing home and are now deciding that new construction is the way to get into a home.


Existing Home Sales:

More great housing news comes from November’s existing home sales data. The latest numbers show a jump of 5.6 percent. This brings the annualized rate to 5.810 million, which is by far the strongest level of the
current housing expansion.

As expected, the jump in sales has eliminated even more inventory in the housing market. The housing supply in October was 3.9 months. This latest surge in purchases has brought the available supply down to only
3.4 months. If demand continues, this will be a windfall for builders, as it is likely to create more upward pressure on home prices and demand for new construction.


Housing starts:

The trifecta of positive housing reports comes in the latest data on housing starts. In November builders increased construction by 3.3 percent. Additionally, single-family permit rose 1.4 percent, which is the most
important component of this measurement. All-in-all, housing is very strong in the country.


Next week’s potential market moving reports are:

• Monday December 25th – Christmas Day – All Markets Closed
• Tuesday December 26th – State Street Investor Confidence Index
• Wednesday December 27th – MBA Mortgage Applications, Pending Home Sales, S&P Corelogic Case-Shiller HPI, Consumer Confidence
• Thursday December 28th – 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.



The final version of the tax reform plan has been approved by both chambers of Congress. President Trump should sign it into law on or before January 3rd.
Third quarter economic growth estimates were lowered slightly from 3.3% to 3.2%. Even still, the economy grew at its fastest pace in more than 2 years.
Despite a jump in the number of filings for unemployment benefits last week, the underlying trend in jobless claims remained consistent with a strong labor


Existing home sales hit an 11-year high in November, despite tight inventory. They rose 3.8% on a year-over-year basis, rising for the 3rd straight month.
New home starts were above expectations for November, at 1.297 million (annualized rate). Single-family housing units surged to a more than 10-yr high.
Pointing to further future increases in inventory, single-family home permits rose 1.4% to 862,000. This is a level not seen since August 2007.

Why does Scrooge love reindeer so much?
Because every single buck is deer to him!


Please note: We will not publish The Markets in a Minute during Christmas week. Hope your holiday is great, and we’ll see
you in the new year.


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.


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


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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
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