Inside Lending | Market Snapshot for the Week of January 8, 2024

    QUOTE OF THE WEEK
“The only normal people are the ones you don’t know very well.”—Alfred Adler, Austrian medical doctor and psychotherapist
  NATIONAL MARKET UPDATE
  Spending on residential construction in November grew a solid 1.1% above October, and 3.7% ahead of last year. Best of all, the emphasis was on single-family homes, where spending is up 5.5% the past year.  10,000 people a day are turning 65, fueling a “silver tsunami” in the housing market. The AARP estimates that among people over 50 (74% of homeowners), 51% of them have downsized their homes. In 2023, new homes accounted for about 30% of total housing inventory and sales—more than twice the normal annual level. Industry experts feel new home sales are near their peak as a share of the total housing market. 
  REVIEW OF LAST WEEK
  STOCKS TAKE A BREATHER… Stocks snapped their nine-week winning streak, as traders worried that a better-than-expected December jobs report could mean the Fed would do fewer rate cuts than expected this year. In addition, minutes from the Fed’s December meet revealed the central bankers feel the rate is likely at or near its peak, yet they aren’t divorcing themselves entirely from the idea that they might still have to raise rates again. But the economy is slowing. ISM Manufacturing showed the sector contracting for the fourteenth month in a row. The ISM Services index had that far larger sector expanding, though at a markedly slower pace. The week ended with the Dow down 0.6%, to 37,466; the S&P 500 down 1.5%, to 4,697; and the Nasdaq down 3.2%, to 14,524. Bonds also took a dive in the new year, the 30-Year UMBS 5.5% falling 0.88, to $99.28. After nine weeks of declines, the national average 30-year fixed mortgage rate held steady 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… ICE Mortgage Technology reports that in November, it took 35.9% of the median household income for the principal and interest payment on a median-priced home, down from 40.3% less than two months earlier.
  THIS WEEK’S FORECAST
  MORTGAGE APPLICATIONS, INFLATION, JOBLESS CLAIMS… We’ll check if the MBA Mortgage Applications Index shows some growth in purchase loans in the new year. The big inflation read this week will be the Consumer Price Index (CPI), expected to show a small monthly increase. Initial Unemployment Claims are forecast up slightly, though still well below recession levels. The stock and bond markets will be closed next Monday, January 15, for Martin Luther King Jr. Day.
  FEDERAL RESERVE WATCH
  Forecasting Federal Reserve policy changes in coming months. Most Fed watchers still think the central bank will hold the rate in January, cut a quarter percent in March, and another quarter percent in May. Note: In the lower chart, a 4.7% probability of change is a 95.3% probability the rate will stay the same. Current rate is 5.25%-5.50%. AFTER FOMC MEETING ON: CONSENSUS Jan 31 5.25%-5.50% Mar 20 5.00%-5.25% May 1 4.75%-5.00%   Probability of change from current policy: AFTER FOMC MEETING ON: CONSENSUS Jan 31   4.7% Mar 20  65.7% May 1  53.0%
  BUSINESS TIP OF THE WEEK
Four straightforward keys to success: don’t make assumptions; be true to your word; don’t take anything personally; and always do your best.
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.
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Jim Passi - Citiwide Home Loans

Jim Passi
Regional Manager
NMLS# 158000

1121 E. Main Street, Suite 121
St. Charles, IL 60174
Mobile: 847-899-1813
Email: jim.passi@alamedamortgage.com

To say the home buying

To say the home buying process is anything less than stressful is a felony! Jim, first and foremost, helped us cope, understand and work through every step when we bought our home. There were many, upon many moments where we needed counsel and Jim was always there. His responses were immediate and insightful. Speaking with Jim was like speaking with a friend and you knew he had your best interest in mind. So, the needed, constant communication with him never became a chore. My husband and I can say, without shadow of a doubt, that Jim was our cheerleader that motivated us to continue on (believe us, our situation was one for the books!).

Now, that we are done (yay!), and the process is over, our hands have been wiped clean; we are still going to continue our rapport with Jim. Knowing he has invested so much time with us, there is no reason to cease our relationship now. We thank Jim for getting our family to where we are today, a brand new home for our son to grow up in.

Angela & Andrew