Market Update for the Week of February 18, 2019


The National Association of Realtors chief economist reports, “with inventory steadily increasing, home prices are, on average, rising at a slower and healthier pace.”

Freddie Mac‘s chief economist adds: “While housing activity has clearly softened… lower mortgage rates and a strong job market should rekindle demand for the spring homebuying season.”

Make no mistake, real estate remains healthy. Black Knight’s PR director confirms, “home values are still up year over year in every state and 99 of the 100 largest U.S. markets.”


GOOD NEWS RULES… Stocks shot up on China-U.S. trade talk progress, the avoidance of another government shutdown, and reassurance from a Fed member that with rate hikes, the Fed is keeping its finger on the pause button.

All that good news prevailed over December slumps in Retail Sales and Industrial Production, especially once traders noted that other reports indicated strong holiday sales and continued manufacturing growth.

Plus, January had more job openings than unemployed workers (now 10 months in a row), inflation stayed under the Fed’s 2% target, consumer confidence rose, and corporate earnings hit double digit growth for the fifth straight quarter.

The week ended with the Dow UP 3.1%, to 25883; the S&P 500 UP 2.5%, at 2776; and the Nasdaq UP 2.4%, to 7472.

Surging stocks hurt bond prices, but negative data cut losses. The 30YR FNMA 4.0% bond ended down .28, at $102.02. Freddie Mac’s Primary Mortgage Market Survey reported the national average 30-year fixed mortgage rate fell to its lowest level in a year. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.


Attom Data Solutions reports that in Q4 2018 more than 14.5 million American properties were equity-rich–having secured loans that are 50% or less of the estimated market value.


EXISTING HOME SALES REBOUND, MANUFACTURING EXPANDS, WHAT THE FED SAID… Key reports include an expected January turnaround in Existing Home Sales, continued but slower manufacturing growth by the Philadelphia Fed Index, and a deeper look into the Fed’s last meet, with the release of the FOMC Minutes.

U.S. stock and bond markets were closed yesterday, February 18, in observance of Presidents Day.

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… Wall Street clearly feels the Fed will sit on its hands and not touch rates for the first half of the year.  Note: In the lower chart, a 0% probability of change is a 100% certainty the rate will stay the same.

Current Fed Funds Rate: 2.25%-2.50%

Mar  20 2.25%-2.50%
May   1 2.25%-2.50%
Jun  19 2.25%-2.50%


Probability of change from current policy:

Mar  20     0%
May   1     0%
Jun  19     0%

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

My wife and I recently

My wife and I recently purchased our home in Joliet, and we used Jim Passi from CityWide Mortgage to get our mortgage. Throughout the entire time, from the first moment we called him to the closing day and beyond, Jim was just amazing. He answered all our questions, some repeatedly, with grace and compassion. He even worked with me while I was having a few temper tantrums on him.

Jim took the time to explain every detail of the process to us, because we have no clue about this process. We aren’t finance people. He is extremely patient with us on every question, and aspect of the mortgage process from preapproval all the way up and through the closing. He explained to us why he does things the way he does, versus the way other brokers do things, and they make complete sense.

We will and DO recommend Jim from CityWide Mortgage to everyone looking to purchase a home today or in the future. Jim is the best mortgage guy one can work with.

Thank you for all you did for us.

Robert and Ruth W.
Joliet, IL

Robert B W.