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Lots of overseas action in this week’s Markets in a Minute!

Lots of overseas action in this week’s Markets in a Minute!
June 8, 2018 Fred Kreger




For the Week Ending June 8, 2018



The Markets:

Now that the market jitters seem to have subsided relating to Italy, the indices have resumed their upward movement. This week the stock market is up more than
400 points for the week, with some new records being set. At the present time confidence in the economy is very high. Last Friday’s strong employment report bolstered sentiment that the economy has few headwinds that will cause it to slow down anytime soon.
This week was light on economic news, and virtually absent of data relating to the housing market


Job Openings and Labor Turnover Report (JOLTS):

The labor market seems to be very stable from March to April. Job openings were little changed at 6.7 million on the last business day of April, as reported
by t

The U.S. Bureau of Labor Statistics. Additionally, new job hires were little changed as well.


Mortgage Application Report:

In a surprising positive turn, mortgage applications for both refinancing and home purchase increased this past week. The latest data from the Mortgage Bankers
Association show applications for both types of loans increased 4.0 percent. This breaks the recent downward trend of loan volume. Refinance application increased from 35.3 percent up to 35.6 percent of total mortgage loan applications.


First Time Jobless Claims:

The latest report shows that claims remained virtually flat from the prior week. At 222,000 for the week ending June 1st, claims remain near historic lows.


ISM Non-Manufacturing Index Report:

The latest data registered 58.6 percent, which is 1.8 percentage points higher than last month’s April report of 56.8 percent. This once again shows continued
growth in the non-manufacturing sector, and the pace of growth appears to be accelerating. The Non-Manufacturing Business Activity Index increased to 61.3 percent, 2.2 percentage points higher than the April reading of 59.1 percent, reflecting growth for the
106th consecutive month, at a faster rate in May.


Next week’s potential market moving reports are:

• Tuesday June 12th – Consumer Price Index
• Wednesday June 13th – MBA Mortgage Applications, Producer Price Index, FOMC Announcement
• Thursday June 14th – First Time Jobless Claims, Retail Sales
• Friday June 15th – Industrial Production


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.







June’s Federal Open Market Committee (FOMC) meeting is next Wednesday. The Fed is widely expected to raise policy rates by 0.250% at this meeting.


Mortgage rates have already factored in a Fed rate increase. However, rates are creeping up after geopolitical tensions in Italy have dissipated.


The European Central Bank also meets next week. If the ECB announces plans to reduce stimulus, rates could be pressured slightly higher.




Volatility in mortgage rates from geopolitical tensions helped push rates lower last week. Mortgage purchase applications rose 4.1% week-over-week.


Freddie Mac reports that 46% of first-quarter purchase mortgages were to first-time buyers. This marks the largest share recorded, dating back to 2012.


Homes in lower price ranges are appreciating faster than more expensive homes. Prices rose 9.3% year-over-year for homes priced 75% or less of the median.




Want to hear a pizza joke? Nah, it’s too cheesy…


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



©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
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