Market Update for the Week of February 11, 2019

MARKET UPDATE

Freddie Mac‘s chief economist notes, “Mortgage rates are essentially similar to a year ago, but today’s buyers have a larger selection of homes and more consumer buying  power than they did the last few years.”

The Mortgage Bankers Association’s head of surveys and forecasts chimed in with “moderating price gains and the strong job market, including evidence of faster wage growth, should help purchase growth going forward.”

More good news for buyers came with CoreLogic‘s report that home prices rose in December at the slowest pace since 2012. And those analysts predict price growth will drop to just 3.4% in 2019.

REVIEW OF LAST WEEK

DOW UP SEVEN WEEKS… Stocks ended with the Dow ahead for the seventh week, the Nasdaq up decently, and the S&P 500 eking out a one point gain. Worries about slowing global growth kept traders in check.

Bad news from across the pond featured lower growth outlooks from Britain and the EU, and German manufacturing declines for December. China’s growth also slowed, while the U.S. trade deal still has some distance to go.

Nevertheless, our economy continues to show little evidence of a slowdown. With two thirds of the S&P 500 reporting earnings, about 72% have beaten expectations, way better than was feared by those looking for a recession.

The week ended with the Dow UP 0.2%, to 25106; the S&P 500 flat, at 2708; and the Nasdaq UP 0.5%, to 7298.

Bond prices went up on the down European data. The 30YR FNMA 4.0% bond ended UP .25, at $102.30. The national average 30-year fixed mortgage rate fell to a 10-month low in Freddie Mac’s Primary Mortgage Market Survey. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.

DID YOU KNOW?

The Urban Institute says 5.6 million millennials live with their parents. Yet their research shows people who go out and buy a home before age 25 end up with the largest return on their housing investment in later years.

THIS WEEK’S FORECAST

INFLATION COOL, RETAIL WARM… Economists expect the CPI Consumer Price Index to show inflation in January remained well within the Fed’s  2% target range. December Retail Sales should grow at a temperate 0.2%.

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.

FEDERAL RESERVE WATCH

Forecasting Federal Reserve policy changes in coming months… The Fed Funds Futures market does not expect the central bank to touch rates right through the start of summer. Note: In the lower chart, a 1% probability of change is a 99% probability the rate will stay the same.

Current Fed Funds Rate: 2.25%-2.50%

AFTER FOMC MEETING ON: CONSENSUS
Mar  20 2.25%-2.50%
May   1 2.25%-2.50%
Jun  19 2.25%-2.50%

 

Probability of change from current policy:

AFTER FOMC MEETING ON: CONSENSUS
Mar  20    1%
May   1     4%
Jun  19     6%
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.
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

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.