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  • Millennials want to buy homes, value mortgage professionals

    Millennials want to buy homes, value mortgage professionals

    Young Americans are convinced that the economic conditions are right to become home owners and will be likely to use a mortgage professional in the process.

    A survey by TD Bank reveals that 90% of millennials believe that now is a good time to buy a home and 51% plan to do so within the next year.

    The desire of most potential first-time buyers is driven by recently increased interest rates with more rises to come and 94% believe that the housing market will improve or stay the same over the next 6 months.

    “Although impending rate increases worry some potential homebuyers, they should keep in mind that rate hikes are a sign of renewed confidence in our economy and job market,” said Ryan Bailey, EVP, Retail Lending Director, TD Bank. “Our survey data tells us that millennials are seizing this opportunity and leading the way with a favorable outlook on homebuying this season and beyond.”

    The lender found that young buyers want single-family homes, 48% opting for newly-built homes and 29% leveraging an upfront mortgage for construction.

    TD’s Mortgage Service Index also reveals that just 17% of borrowers applied for their mortgage by phone and 19% online; 64% applied in person, highlighting the continued importance of direct contact with mortgage brokers and lenders.

    The majority of buyers (88%) felt that they had enough information about the mortgage process although around half would like more to be available online. More than three quarters said that their experience with their lender was positive.

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  • Consumers spend and investors won’t let go in this week’s Markets in a Minute!

     

     

    For the Week Ending June 2, 2017

    Home prices continue to move higher and are starting to play a bigger role in the current economy. The most recent Case-Shiller’s adjusted 20-city index for the month of May jumped 0.9 percent. This is slightly higher
    than expectations and continues to point to positive momentum for the housing market. The big news in the report is the unadjusted rate of growth leaped a much higher-than-expected 1.0 percent. Growth compared to the same time last year is up by 5.9 percent.

     

    When you combine this latest report with the strong data from last week regarding the FHFA report and existing home sales data, everything seems to be pointing to housing appreciation at 6.0 percent per year. Home
    appreciation is once again creating growth in wealth for homeowners. This will likely continue to drive the economy. A recent article in the Wall Street Journal discussed how cash-out refinancing is beginning to grow again.

    On the flip side of housing, the latest data on pending homes sales for the Spring market is not quite as strong. Pending home sales declined for the second straight month, down by 1.3 percent for the month of April.
    The index is at 109.8 which is 3.3 percent lower than where the market was a year ago.

     

    The pending home sales index keeps track of contract signings for home resales. The latest report is showing weakness that will likely show up in May and June’s final home sale data. Mortgage lenders around the country,
    as well as real estate professionals, have indicated that there continues to be a lot of pent up demand for housing. The challenge is that extremely limited inventory is keeping contract signings lower than what would be expected for the Spring buying season.

     

    Reflecting the challenge with buyers locating homes and getting accepted offers is showing up in the latest Mortgage Bankers Association report on loan applications. Purchase applications in the week ending May 26th
    dropped by 1.0 percent. This is the third consecutive week of declines placing the unadjusted purchase index only 7 percent higher than a year ago. Refinancing applications dropped 6 percent for the same week. This is in stark contrast to the prior week’s
    jump of 11 percent. In the current lending environment refinances represent 43.2 percent of mortgage activity. The biggest concern about the mortgage trend is that mortgage rates have declined, however loan activity is not growing.

    With the growth in home equity, and the latest strong consumer confidence data, many experts are optimistic that the housing market will remain steady and possibly turn stronger in the coming months. May’s consumer
    confidence index came in at an unusually strong reading of 117.9. Typically, a strong reading transfers into positive movement in housing and mortgage finance.

     

    Next week’s potential market moving reports:

    • Monday June 5th – Factory Orders, ISM Non-Mfg Index, Labor Market Conditions
    • Tuesday June 6th – JOLTS Report
    • Wednesday June 7th – MBA Mortgage Applications
    • Thursday June 8th – First Time Jobless Claims, Bloomberg Consumer Comfort Index
    • Friday June 9th – Wholesale Trade

     

    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 Consumer Confidence Index, which had decreased in April, fell again slightly in May. However, consumers remain optimistic about the economy on the whole.
    Consumer spending recorded its biggest increase in 4 months in April, and monthly inflation rebounded. Inflation pressures mortgage rates to move higher.
    The Fed sees the economy expanding at a “modest to moderate” pace through May, strengthening the case that a policy rate hike at the June meeting is likely. 

     

    Case-Shiller reports the inventory of homes for sale remains “unusually low,” driving up values. Prices continued to rise in March, reaching a 33-month high. 
    Pending home sales were down slightly in April, according to NAR. Demand remains high, but the low inventory is causing a bottleneck in sales.
    One factor that may be adding to inventory woes is the failure of investors to sell. Many homes that were purchased during the downturn are now rentals.

    My neighbors always leave their sprinklers on, which is a bit annoying. I guess you could say it’s a source of constant irrigation.

     

    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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  • Politics bring better mortgage rates in this week’s Markets in a Minute!

     

     

    For the Week Ending May 19, 2017

    Stock market appears set to close down about 300 points for the week based upon current futures in the market. Wednesday the market tumbled 373 points on concerns over concerns that President Trump may have been

    obstructing justice with the firing of Director Comey.

    As the investigation unfolds it is appearing more and more that President Trump may have attempted to influence the former FBI Director to stop his investigation of former national security adviser Michael Flynn.

    Some Democrats are already screaming for the President to be impeached. It may be a little early for that type of talk, however concerns continue to mount over the administrations involvement in the Russia hacking scandal.

     

    New home sales continue to surprise the market as builders are reporting strong activity for the month of May. Builders appear even more optimistic about future sales. The housing market has risen 2 points up to

    70, which is higher than analysts were expecting. Current sales are also higher by 2 points to a level of 76. Buyer traffic remains strong at 51 and this is the 5th time in the last 6 months that the reading is over 50, which is considered very healthy.

     

    Housing starts continue to remain strong for the single-family sector. This area rose 0.4 percent for the month of April to a rate of 835,000. The downside of the report is that permits for single-family home construction

    fell 4.5 percent. There does not appear to be any factors such as weather that appear to be contributing to this decline so questions are starting to be asked as to if this is the beginning of a change in direction. It is too early to tell with just this report,

    but analysts will certainly be watching future releases of housing data very closely.

     

    Despite the fact that mortgage rates remained flat, applications for both purchases and refinances declined from 8 year highs in the week ending May 12th. Purchase applications dropped a seasonally adjusted 3.0 percent

    while refinances declined 6.0 percent. The positive part of the report is that purchase applications remain 9.0 percent higher than the same time last year. Not surprising is that refinance applications are down 41.1 percent from their highs. This is the lowest

    level of refinance activity since September 2008.

     

    The labor market continues to remain extremely tight. First time jobless claims came in at 232k. The demand for labor is very strong and show no sign of letting up. Qualified candidates are hard to attract and this

    will likely lead to wage growth in the coming months.

     

    Next week’s potential market moving reports are:

    • Tuesday May 23rd – New Home Sales

    • Wednesday May 24th – MBA Applications, FHFA HPI, Existing Home Sales, FOMC Minutes

    • Thursday May 25th – First Time Jobless Claims, Bloomberg Consumer Comfort Index

    • Friday May 26h – Durable Goods Orders, GDP, Corporate Profits

     

    As your trusted 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.

     

     

    Stocks plummeted and bonds rallied after events in Washington, D.C., spooked investors. The rally in bonds has helped to improve mortgage rates.
    The investigations into Trump’s recent activities have occupied investors’ attention. Other factors, such as possible Fed rate hikes, have taken a

    back seat.

    The labor market appears to be near full strength as jobless claims came in at a 28-1/2-year low. This is the 115th straight week claims were below

    300,000.

     

    Home builders showed the highest confidence in the housing market since June 2005. The NAHB index reached 71 in May, as home supply remains tight.
    Housing starts were down slightly in April, but building of single-family homes was up 0.4%. Labor and material shortages could be to blame.
    Builders are struggling to meet demand of lower-priced starter homes. Higher costs for labor, land and materials make it more expensive to build homes.

    Why did the scarecrow get a raise?

    He was outstanding in his field.

     

    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.

     

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  •  

     

    For the Week Ending May 12, 2017

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

     

    A week with few surprises on the economic front had some investors making the decision to cash out their profits from the recent stock market rally. With the Dow Jones Industrial Average poised to finish the week
    down around 200 points, it seems that the major driver of the decline was more profit taking than anything else.

     

    The only data related on housing this week was the Mortgage Bankers Association report on mortgage loan applications. Purchase apps for the week ending May 5th increased 2.0 percent. This follows last week’s increase
    of 4.0 percent. Home purchase activity continues to remain extremely high in almost every major market in the country. The shortage of home inventory is what appears to be the only thing holding back the purchase numbers from soaring as demand for housing
    remains at a post-recession high. Applications for refinances also increased by 2.0 percent. Overall refi activity is approximately 40 percent behind the same time last year.

     

    The report on Job Openings and Labor Turnover (JOLTS) shows there are plenty of help-wanted signs to be seen, however there appears to be a limited number of qualified applicants to fill these open positions. With
    unemployment at one of the lowest points in history, it is becoming harder and harder for employers to attract the right talent. More employees are changing companies than in recent past as confidence in the economy continues to slowly improve. However, with
    unemployment so low, the cost to employers to attract qualified talent is increasing.

     

    First time jobless claims remain at historical lows with the latest report showing only 236,000 claims were filed last week. 300,000 is considered the benchmark number as to where concerns around the job market might
    appear. The low numbers of claims validates the JOLTS report as to why employers are struggling to find the right talent to fill their open positions.

     

    While March was an unusually weak month for inflation, April appears to be showing the exact opposite. The Producer Price Index rose a higher than expected 0.5 percent. Analysts were expecting only a 0.3 percent
    increase in wholesale prices. When you exclude the volatile food and energy sectors, prices rose 0.4 percent which places wholesale inflation on an annual rate of just under 5.0 percent. The likelihood of this number remaining at this level is extremely low,
    however it is important to note that this is one of the highest readings on wholesale price increases since 2007. A factor in the price growth is related to the recent Fed increase in interest rates.

     

    Finally, consumer confidence readings are beginning to move back from their highs. The consumer comfort index remains very strong at a reading of 49.7, however this is a decline of 1.2 points from the previous month.
    Confidence continues to point to strength in employment.

     

    Next week’s potential market moving reports are:

    • Monday May 15th – Housing Market Index
    • Tuesday May 16th – Housing Starts, Industrial Production
    • Wednesday May 17th – MBA Applications
    • Thursday May 18th – First Time Jobless Claims, Leading Economic Indicators
    • Friday May 19th – St. Louis Fed Reserve Bank President Speaks

     

    As your trusted 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.

     

     

    Inflation at the wholesale level, before it reaches the consumer, rose 0.5% in April and is up 2.5% for the last 12 months. Inflation pressures rates to go
    higher.
    The Fed is expected to raise policy rates at their June FOMC meeting. Raising rates will help keep rising inflation in check at the Fed’s target of 2%.
    There’s speculation that the Fed may also raise policy rates again in September. Mortgage rates may be pressured higher now as traders prepare for the hike.

     

    Fannie Mae’s Home Purchase Sentiment Index rose 2.2% in April. Five of six components that measure confidence in buying were up for the month.
    Forty-nine percent of those that don’t yet own a home expect to purchase in the next 5 years. Ten percent say they plan to buy as soon as the next year.
    Mortgage applications were up last week, with home buyers fueling the increase. Total applications for loans rose 2.4%, showing strong demand continues.

    Sometimes I tuck my knees into my chest and lean forward. That’s just how I roll.

     

    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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  • Homes prices keep rising in this week’s Markets in a Minute!

     

     

    For the Week Ending April 28, 2017

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

     

    Housing data dominated the market data being released. Tuesday launched the housing news with the Federal Housing Finance Agency report on home prices. For the month of February home prices increased 0.8 percent.
    This was double the amount the majority of analyst’s predicted. Adding to the positive news was January’s numbers were revised from being flat, to showing an increase of 0.2 percent. Overall, home prices are up 6.4 percent from the same time last year.

     

    Following the FHFA report, S&P Corelogic Case-Shiller HPI showed an increase in home prices by 0.7 percent for the 20 major cities measured. This stronger than expected report reflects a 5.9 increase from last year,
    and the best spread in 2-1/2 years.

    What is impressive about this latest report is that some of the weakest cities in the past have shown significant improvement. The Midwest, notably Ohio and Michigan, which have been struggling to move higher, showed
    price growth of 0.9 percent in Cleveland, and 0.8 percent in Detroit.

     

    When it comes to year-on-year appreciation, nothing is beating the Pacific Northwest. For well over a year, Seattle and Portland have been leading the country in price appreciation. Seattle home prices are currently
    up by 12.1 percent from the same time last year. Portland Oregon is higher by 9.6 percent.

     

    Overall home prices across the country are averaging a year-on-year increase of 5.9 percent. Although this number is respectable, it is hard for people to be super excited about it. The interesting dynamic about
    this increase is that it is occurring in a low interest rate environment. Typically, when rates are low, home appreciation can be stagnant.

    Pending home sales were the only negative in this week’s housing data. This sector showed a decline of 0.8 percent. The only reason for the decline is the lack of available inventory. Demand remains strong.

     

    Rounding out this week’s housing reports was the data on new home sales. From February’s sales of 592,000, March showed a nice increase up to 621,000. Permits for new construction are also higher. What is very encouraging
    in the latest report is that the increase in new home sales did not come at the expense of reduced prices.

     

    Prices for new homes rose a very strong 7.5 percent. Sales are up a whopping 15.6 percent from a year ago. More homes came on the market, however with the increase in demand, overall supply declined down to 5.2 months
    from 5.4 months.

     

    Next week’s potential market moving reports are:

     

    • Monday May 1st – Construction Spending, PMI Manufacturing Index
    • Tuesday May 2nd – FOMC Meeting Begins
    • Wednesday May 3rd – FOMC Announcement, MBA Applications, ADP Employment Report
    • Thursday May 4th – First time Jobless Claims, Factory Orders
    • Friday May 5th – Employment Situation

     

    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.

     

    Political concerns in France had recently driven global investors to seek safety in bonds, helping rates. Fears have eased though, which is slightly worse
    for rates.
    Trump released his proposed tax cuts this week but was short on details. Investors are concerned about the vagueness, which has helped rates.
    Durable goods data is a bit mixed but still supports a growing economy. Jobless claims’ four-week average is at a two-month low, indicating a strong labor
    market.

     

    Pending home sales were down slightly in March, a byproduct of continuing low inventory and high demand. 
    The national home price index jumped 5.8% in February, according to a Case-Shiller survey. This is the biggest increase in nearly 3 years.
    Sales of new single-family homes rose for the 3rd consecutive month in March. The numbers were the 2nd highest on record since the Great Recession.

    With a calendar, your days are numbered.

     

    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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