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Real Estate Lending News

  • Hurricanes and the Fed cause stormy weather in this week’s Markets in a Minute!

     

    For the Week Ending September 22, 2017

    The Stock Market and the Fed:

    Other than a brief, and I mean for less than 30 minutes, did the stock market become concerned about the latest Fed meeting statement. You can look at stock market charts minute by minute and you will see within seconds of the Fed announcement that the Fed will likely increase rates before years end, the Dow plunged 50 points. However, within 30 minutes of the announcement the market was rising once again. In total 45 minutes from the announcement, the Dow was back to pre-announcement levels. The Dow finished the trading day up 39 points.

     

    Mortgage Rates and Applications:

    Despite the fact that mortgage rates virtually flat last week, applications for purchases and refinances both declined. Apps dropped 11.0 percent and 9.0 percent respectively, and caught may analysts by surprise. Overall applications versus the same time last year are only up 2.0 percent. This is the closest gap we have seen between present and last year’s statistics.

     

    Limited housing inventory continues to contribute to the limited growth in housing. As of late, the inventory, which had been increasing slightly, has once again returned to contraction. There continues to be speculation that with the rise in home prices all year, the fall could drive sellers to enter the market.

     

    Housing Starts

    This sector of the market is doing well. The latest stats for August show an increase of 7.9 percent from the prior month. To be transparent, some of the increase is due to rebuilding taking place in Texas related to the storm damage of Hurricane Harvey. It is likely that we will see additional increases in the coming months from the continuation of building in Texas, plus the addition of construction in Florida in the aftermath of Hurricane Irma. However, it is important to note that overall housing starts are higher even when you subtract out the Hurricane factor.

     

    FHFA House Price Index

    Home price increases have been cooling as of late, and the latest report for July continues to show this trend. Home prices only rose 0.2 percent from June to July. Overall prices remain 6.3 percent above last year.Th e Mountain and Pacific States remain on top with annual prices increases of 8.2 percent.

     

    Next week’s potential market moving reports are:

    • Monday September 25th – Dallas Fed Manufacturing Survey
    • Tuesday September 26th – New home Sales, Consumer Confidence
    • Wednesday September 27th – MBA Mortgage Applications, Pending Home Sales
    • Thursday September 28th – First Time Jobless Claims, GDP
    • Friday September 29th – 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.

     

     

    The Fed announced they will not raise policy rates this month. However, they did signal a rate hike in December is likely, as well as 3 more hikes in 2018.
    In October, the Fed will also begin reducing their balance sheet by buying fewer bonds. This could adversely affect mortgage rates over time.
    The Fed sees near-term risks to the economy as “roughly balanced.” Low unemployment and economic expansion are good, but lack of inflation is a concern.

     

    Home builders are slightly less optimistic about the housing market this month. The recent hurricanes are causing worries over labor and materials.
    Housing starts were down slightly for the second straight month in August. However, single-family home construction was up 1.6% from July.
    Existing home sales declined to a 1-year low in August, as inventory continues to be a problem. Areas lacking activity due to recent hurricanes are also to
    blame.

    To this day, the guy that used to bully me at school still takes my lunch money. On the plus side, he makes a great sub sandwich.

     

    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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  • Here’s the latest on home values. 2017 2nd Quarter Update

     

    As part of my ongoing service to you, I like to share information on trends in the real estate industry. Simply  
    click here
     to view an interactive map with the most up-to-date rates of change in home values, as well as appreciation rates over a number of different time periods.

     

    My hope is that understanding recent and long-term trends can help you remain an informed consumer, whether you’re comfortable in your home or considering a change. Please take a few seconds to check it out.

     

    If you have questions or if I can ever be of service to you, your family and your friends, please let me know. I am here to help and happy to do so.

     


    This information is derived from the FHFA All Transactions Index and is compiled by Estate of Mind, Inc., for the period illustrated. Figures shown are historical averages and as such, do not represent price movement for any one property. All property values can rise or fall independently and may do so based on many factors. Information is deemed accurate but not warranted.

     

     

    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.

     

     

    Read more
  • A sign more inventory could be coming in this week’s Markets in a Minute!

     

     

    For the Week Ending September 15, 2017

    The Stock Markets:

    The stock market just keeps heading higher. Another day, and another record high for the Dow Jones Industrial Average. Every day this week through Thursday, the Dow set a new market record. Even with increase in the chance that the Fed will raise interest rates, based upon the latest consumer inflation data, investors continue to remain optimistic about the strength of the economy.

     

    If you have been reading my newsletter for more than a few months, you have seen me write about how “if we hear something enough times, we become numb to it”. This fact has shown up once again with our relationship, or lack of one, with North Korea. With the likelihood of yet another missile test coming soon, along with the latest threat from Pyongyang to destroy the United States, investors do not seem to be phased. Despite these threats, unlike before where the market would panic, investors seem to be treating it now as business as usual.

     

    Mortgage Rates and Applications: The same as the week before, last week’s further decline in mortgage rates has sparked both purchase and refinance applications. With the most significant movement in this data we have seen in months, applications for purchases soared a seasonally adjusted 11.0 percent for the week ending September 8th. Refinances jumped 9.0 percent for the week as well.

     

    Refinance activity continues to represent and increasing portion of mortgage financing. Where only a few weeks ago refi’s accounted for 42 percent of loan applications, as of last week, the number is now up to 51 percent, which is the highest level since January. Overall purchase mortgage activity is 7.0 percent higher than the same time last year and mortgage rates are at their lowest level since the Presidential election in November 2016. It is an incredible time to purchase a home and it seems as if more and more people are beginning to recognize this as purchase activity continues to increase.

     

    First Time Jobless Claims

    In a surprise reading, the latest first time jobless data came in opposite of what almost every analyst predicted. With the expectation that claims would once again increase due to more people filing because of Hurricane Harvey in Texas, claims actually declined by 14,000 for the week ending September 9th. Claims are expected to temporarily rise next week due to the damage from Hurricane Irma, as those numbers are not factored into this week’s data. However, the increase is expected to be short lived as damage from the storm was far less than anticipated.

     

    Next week’s potential market moving reports are:

    • Monday September 18th – Housing Market Index
    • Tuesday September 19th – Housing Starts
    • Wednesday September 20th – MBA Mortgage Applications, FOMC Meeting Announcement
    • Thursday September 21st – First Time Jobless Claims, FHFA House Price Index

     

    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.

     

     

    Stocks soared to new record highs this week, in part because estimated financial losses from Hurricane Irma dropped from $200 billion down to $50 billion
    or less.
    Higher gas prices and rent increases helped consumer prices jump in August, pointing to firming inflation. The Consumer Price Index rose 0.4% over July.
    Low inflation, despite a strong labor market, is seen as causing the Fed to delay raising policy rates for a third time this year. It also supports low mortgage
    rates.

     

    Mortgage applications jumped this week, as buyers took advantage of low rates. Refinance applications were up 9%, and purchase applications were up 11%.
    CoreLogic reports that June mortgage delinquencies were the lowest in nearly a decade. Only 4.5% of outstanding mortgages were in some stage of delinquency.
    Fannie Mae’s latest survey shows a record number of consumers who say now is a good time to sell a home. Over 36% agreed, up 8% from July’s survey.

    Our computers went down at work today, so we had to do everything manually.

    It took me 20 minutes to shuffle the cards for Solitaire.

     

    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.

     

    Read more
  • Q&A with NAMB President Fred Kreger

    Q&A with NAMB President Fred Kreger

    The National Association of Mortgage Brokers is the voice of the mortgage industry, representing the interests of mortgage professionals and homebuyers since 1973.   Fred & Brian discuss current issues such as GSE reform, current status of the Mortgage Fairness Act, National Flood Insurance Program, as well as the immediate need to encourage our younger generation to enter our industry as new originators and appraisers.

    For more information about membership and upcoming NAMB events, CLICK HERE

    Fred Kreger, CMC
    American Pacific Mortgage
    (916) 960-5824
    Email: Fred.kreger@apmortgage.com

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  • Hurricanes in the headlines in this week’s Markets in a Minute!

     

     

    For the Week Ending September 8, 2017

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

     

     

    Traders sought the safety of bonds this week after concerns rose over North Korea’s nuclear ability. The bond rally helped keep mortgage rates low.
    Hurricane Harvey has caused jobless claims this week to rise to a 2-year high. The weekly increase of 62,000 was the largest since November 2012.
    Fed officials have come out this week saying that lack of inflation is a problem. Without inflation, it is unlikely that the Fed will raise policy rates again
    this year.

     

    After a brief improvement in June, pending home sales fell slightly in July. Sales aren’t expected to improve much without an increase in inventory.
    Hurricane Harvey is expected to cause rents in Houston to increase as much as 10%. Home prices are also expected to jump due to even lower inventory.
    NAR is urging Congress to continue the National Flood Insurance Program, set to expire Sept. 30. Without it, 40k home sales per month could be disrupted.

    I hope the guy who invented autocorrect burns in hello!

     

    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.

     

     

     

     

    Read more
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