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Tax reform the big topic in this week’s Markets in a Minute!

Tax reform the big topic in this week’s Markets in a Minute!
November 10, 2017 Fred Kreger


For the Week Ending November 10, 2017

Tax Reform:

All the talk as of late is the forthcoming tax plan to be released by the White House in the coming days. It seems that the like and dislike, for the most part, is split directly down party lines, However, there appears to be some Republicans in office that are struggling to support the proposed changes the way they are. The bottom line is almost every President, in as long as I can remember, has said they would reform the tax code. However, we have yet to see it,or even have any President come close to getting it passed. My feeling is that once again we will not see changes that are so badly needed, because there is no agreement on what they should be.


Mortgage Rates and Applications:

We have the trifecta of “1”’s this week. Purchase applications rose by a seasonally adjusted 1.0 percent for the week ending November 3rd. This is a slight reversal from the prior week’s minor decline of 1.0 percent. Refinancing declined only 1.0 percent as there was little movement in interest rates. Purchase applications are ahead of the same time last year by 9.0 percent. Overall purchase and refinance application activity is split almost even. Purchase loan applications represent 51.0  percent versus refinancing being at 49.0 percent.


The Stock Market:

With very little economic data being released this week, along with Friday’s Veteran’s Day Holiday, investors appear to be sitting on the sidelines. All of the major exchanges have been trading in a relatively narrow range. The stock market continues to hover near record highs, and for this week, there is little for investors to latch onto to make significant changes in strategy.


Job Opening and Labor Turnover Report (JOLTS)

With all of the job openings that supposedly exist, how is it that so many people in the workforce continue to struggle to locate better jobs, or receive significant pay increase where they work currently?


The latest data for the month of September shows that job openings increased slightly to a very abundant 6.093 million. This is up over August’s revised 6.090 million. All of the other measurements related to this report show little to no change in the relationship between new hires, layoffs, quits, and discharges.


Next week’s potential market moving reports are:

• Tuesday November 14th – Producer Price Index
• Wednesday November 15th – MBA Mortgage Applications, Consumer Price Index, Retail Sales
• Thursday November 16th – First Time Jobless Claims, Industrial Production
• Friday November 17th – Housing Starts


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.



Traders continue to drive stocks to new heights and new records. However, concerns over the new tax reform plan going through have started to surface.
The tax reform plan is expected to drive economic growth and corporate profits. If the plan doesn’t go through as anticipated, it could help interest rates.
The labor market remains strong. Job openings posted by employers in September were steady from the prior month, a near record high.


Rents have been increasing far faster than the pace of inflation. However, rising homeownership numbers could curb demand, slowing the increases.
New applications for purchase mortgages increased 1% last week. That’s 9% higher year-over-year, as buyers seem less concerned about rates.
The tax reform plan, as proposed, would lower the mortgage deduction on new purchases. There are lots of opinions of what effect, if any, it would have on

I was called into my manager’s office today because of my dress code. 

He said, “You can’t wear pajamas for work.” 

I said, “Everyone else does.” 

He said, “That’s because they’re patients.”


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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