Market Update for the Week of September 17, 2018


Black Knight reports that in Q2 this year, tappable equity for homeowners with mortgages passed $6 trillion for the first time in history. And this happened even with the recent slowdown in home price growth.

Freddie Mac‘s chief economist thinks the “spectacular stretch of solid job gains and low unemployment should help keep homebuyer interest elevated. However, mortgage rates will likely also move up.”

This doesn’t worry the chief economist at a large regional real estate firm, since  “low unemployment rates encourage employers to raise wages,” which can cover higher loan costs. He also sees “more homes coming on the market.”


STOCKS REBOUND OFF BOOMING ECONOMY… Stocks returned to their winning ways as investors saw tariff threats as negotiating tactics and focused instead on growth in corporate earnings and the overall economy.

Industrial Production set a new record high, Retail Sales are up a strong 6.6% from a year ago, and Americans’ confidence in the U.S. economy and in their own well-being stands near a 14-year high.

Plus, workers are actually doing better than corporations. Since the end of last year, total wages have increased by a $200 billion annual rate, while corporate profits were up by just $100 billion annualized!

The week ended with the Dow UP 0.9%, to 26155; the S&P 500 UP 1.2%, to 2905; and the Nasdaq UP 1.4%, to 8010.

Bond prices dipped for the week after all the good economic data. The 30YR FNMA 4.0% bond ended down .34, at $101.11. Freddie Mac’s latest Primary Mortgage Market Survey saw the national average 30-year fixed mortgage rate up for the third week in a row. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.


PropertyShark reports 83% of Generation Z (born1995 to 2010) plans to buy a home in the next five years and get this: the ‘Instagram Generation’ would sacrifice location and commuting distance for size and amenities.


NEW HOMES GOING UP, EXISTING HOMES SELLING… August Housing Starts are expected to shoot past a 1.2 million annual rate. Existing Home Sales should also spring back to a 5.37 million yearly pace.

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 higher loan rates.


Forecasting Federal Reserve policy changes in coming months… The Fed futures market is dead certain about a rate hike a week from Wednesday, but it sees no moves again until December. Note: In the lower chart, a 100% probability of change is a 0% 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 26 100%
Nov 8     6%
Dec 19    80%


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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.

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Jim Passi - Citiwide Home Loans

Jim Passi
Regional Manager
NMLS# 158000

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

This testimony is from my

This testimony is from my experience being a first-time home buyer going through the process of purchasing a home with Jim Passi from City Wide home loans. Let me just start off by saying how reliable, courteous, genuine, informational and hardworking Jim Passi is. Jim is not like a lot of other loan officers. My house I purchased for under 160 grand, not a huge real estate deal. From experience with other loan officers they don’t want to deal with a smaller purchase or work on a loan that might be difficult. With our credit score being low and work history not at expectations I was almost positive I would have to wait a year or maybe two years before being approved and close on a house. I definitely had doubts that I would be a home owner, Jim worked hard and stayed in contact with us updating us almost every day of the process, even during evening hours and weekends during the stressful underwriting process. Communication is key and I give Jim a 5-star rating with that. I consider myself an average blue-collar hard-working guy that has experienced hardships during life. Jim was never turned away by the hardships, he was understanding of them and I feel like it made him work even harder to make this process a success.

I just successfully closed on a house with my fiancé. Jim did what I thought was impossible. Again, with our credit score being under 600 and spotty work history it was a difficult process that became a success with a lot of hard work. Jim also got me the best interest rate that was available. He was constantly checking the market and keeping me informed on what was available. He wanted me to take my time and make sure what rate was in our best interest. Jim has a cretin genuine care for his clients and speaking with him so much during this process I know he truly cares and wants to help people. Even after we closed Jim called and congratulated us with excitement. Jim made a dream come true for us that I was sure we would have to wait for. I’m just going to say if he made my dream come true with all the problems I had he can make a lot of others come true for any one in a similar situation. Jim Passi is highly recommended.

Tim A.