Market Update for the Week of September 4, 2018


The Pending Home Sales index edged down 0.7% in July, but this was after a 1.0% jump in June. Some economists say these numbers point to a small gain in August existing home sales.

The Case-Shiller Home Price Index rose 0.3% in June. But First American‘s chief economist feels “price appreciation may be slowing” with “a natural moderation in home prices, rather than a sharp decline.”

Freddie Mac‘s chief economist adds, “the economy and the labor market are very healthy right now, and mortgage rates have stabilized…. These factors should continue to create…an uptick in sales.”


SETTING MORE RECORDS… The S&P 500 ended above 2900 and the Nasdaq soared past 8,000 for the first time ever. Progress on trade helped, but the big drivers were strong corporate earnings and economic fundamentals.

Need examples? The second read on Q2 GDP moved economic growth up to 4.2%. Or how about Consumer Confidence–now at its highest level in 18 years.

Consumers are no doubt delighted to see their disposable income (income after taxes) up 5.3% from a year ago. That’s sent personal spending up 5.2% the past year to help to boost the economy.

The week ended with the Dow UP 0.7%, to 25965; the S&P 500 UP 0.9%, to 2902, and the Nasdaq UP 2.1%, to 8110.

Longer-dated bonds fell as stocks rose. The 30YR FNMA 4.0% bond ended down.17, at $101.81. Freddie Mac’s latest Primary Mortgage Market Survey saw the national average 30-year fixed mortgage rate barely move up. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.


A mortgage insurance company reports first-time homebuyers now account for 55% of mortgages originated.


MORE FACTORY ACTIVITY, MORE JOBS… U.S. financial markets were closed yesterday for Labor Day, leaving us with a shortened trading week featuring two key economic reports. Manufacturing and employment have shown new strength the past year and that’s expected to continue in August’s ISM Index of manufacturing and monthly Employment Report.

NOTE: Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.


Forecasting Federal Reserve policy changes in coming months… A quarter percent rate hike this month is now a near certainty, with a second one seen for the end of the year. Note: In the lower chart, a 98% probability of change is only a 2% probability the rate will stay the same.

Current Fed Funds Rate: 1.75%-2.00%

Sep 26 2.00%-2.25%
Nov 8 2.00%-2.25%
Dec 19 2.25%-2.50%


Probability of change from current policy:

Sep 26 98%
Nov 8  6%
Dec 19 70%


There are two good reasons to tackle major tasks first thing: you get the big stuff out of the way; and the major sense of accomplishment you’ll feel gives a big boost to the rest of your day.

This is an advertisement for Jim Passi. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice, or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in this message is the property of Citywide Home Loans and cannot be reproduced for any use without prior written consent. This message is intended for business professionals only and is not intended for distribution to consumers or other third parties. The material does not represent the opinion of Citywide Home Loans. Citywide CO NMLS #67180. Regulated by the Division of Real Estate.

The Jim Passi Team at Citywide Home Loans proudly serves Illinois, Wisconsin, Michigan, Indiana, Georgia and Flordia. If you are looking to buy a home or refinance, we have you covered. Apply Now to get started.
Posted in
Jim Passi - Citiwide Home Loans

Jim Passi
Regional Manager
NMLS# 158000

1300 East Woodfield Road, Suite 302
Schaumburg, IL 60173
Mobile: 847-899-1813
Office: 847-273-3265

Andrea L. Testimonial

I want to thank you for making the process of establishing a loan so easy for us. As a real estate agent in Denver, I have the opportunity to work with a lot of lenders – I know the good ones from the bad ones. And YOU are definitely one of the “good ones”. For my own home purchase, you can imagine how selective I was in working with a lender on our mortgage. I am so glad that we worked with you and CityWide. It’s no secret that the process of procuring a mortgage is extremely stressful, but you made this process as smooth of a transaction that it could have been and given the fact that we lived in Denver, and Marcus was in the middle of a very hectic travel schedule, you met and EXCEEDED our expectations.

Your attention to detail, your personal attention to us and our needs, and your overall professionalism made the biggest difference and the best possible experience for our family. I will recommend you not only to my friends and family but to my clients who are looking for the highest level of service for their mortgage.

Thanks again Jim for everything you did for us. We are so happy to be back home in Naperville, and in our house, that very much feels like home.

Andrea L.