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

Here’s this week’s Markets in a Minute!
August 11, 2017 Fred Kreger

 

 

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

 

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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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