|For the Week Ending December 29, 2017|
Please enjoy this quick update on what happened this week in the housing and financial markets.
The Stock Market and Investing:
The end of the year stock rally appears to be more subdued this year than in previous years. None the less, the stock market is finishing the year at, or very close to record highs. Anyone who has money in any type of 401K, IRA, Money Market, etc… has nothing to complain about this year. Unless the money manager running a fund was completely oblivious to the world, it would be impossible for any investor not to see the value of their portfolio rise sharply. More of the same is expected for the early part of 2018 barring on major national or international event that could spook the economy.
The S&P Corelogic Case-Shiller House Price Index:
The home price increase in 2017 is one of the biggest stories for the economy. Even though the final numbers for the 2017 Case-Shiller HPI won’t be announced until February, the first 10 months of the year have been terrific. The year-on-year comparison from 2017 to 2016 shows prices are up 6.4 percent. This is the strongest gain in home values since July 2014. The most recent report shows the 20-city index with a healthy gain of 0.7 percent. This is the second month in a row that all 20 cities showed a gain. Las Vegas led the way with a 1.4 percent rise, while San Francisco came in second with a 1.2 percent increase.
Lack of home supply continues to be the central factor creating upward pressure on prices. With the continued growth in housing demand, home prices are likely to continue to rise in 2018.
Pending Home Sales:
There appears to be no clear explanation as to why the pending home sales index has been relatively flat, and not in line with the strength of existing home sales. Even though overall housing data has been strong heading into the end of the year, this index seems to be running at its own pace. Pending home sales rose only 0.2 percent in November. The one exception to the slow movement of this index was last month’s report of a sharp increase of 3.5 percent.
The regional breakdown for October’s report is that there were small declines in the West and South. The Midwest rose slightly, and the Northeast rocketed higher by 4.1 percent. Nationally, the Northeast for most of the year, has had the largest available housing inventory. This could very easily be the explanation for the higher level of pending sales in this region versus other parts of the country.
Next week’s potential market moving reports are:
• Monday January 1st – New Years Day – All Markets Closed
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.
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
American Family Funding
Certified Mortgage Consultant
NLMS # 1850 / 214640 BRE# 01215943 / 01371184
28368 Constellation Road
Santa Clarita, CA
©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.