Inside Lending | Market Snapshot for the Week of February 5, 2024

February 5, 2024/
    QUOTE OF THE WEEK
“The chief function of the body is to carry the brain around.”—Thomas A. Edison, American inventor and businessman
  NATIONAL MARKET UPDATE
  Spending on residential construction in December went up 1.4% from November, with spending on single-family homes up a solid 1.6%. Spending is up 9.9% on single-families compared to December a year ago. The national S&P Case-Shiller Index reports home prices in November fell a tick, the first dip in 10 months, but they’re up 5.1% annually, and 6.6% by the FHFA price index of homes financed with conforming mortgages. Realtor.com reports active inventory continues to grow. The number of homes for sale not under contract is now 10.1% above the level of a year ago, helped by an increase in new listings, up 2.1% versus last year.
  REVIEW OF LAST WEEK
  NEW HIGHS… The S&P 500 and the Dow logged fresh record highs and the Nasdaq a new 52-week high, as traders sparked to a way-better-than-expected jobs report and strong earnings from some tech giants. January’s 353,000 new Nonfarm Payrolls, 0.6% hike in hourly earnings, and 3.7% unemployment rate delighted traders, who were disappointed Wednesday when Fed Chair Powell pretty much took a March rate cut off the table. Yes, Powell is playing it cautious with rate cuts, fearing a return to rising inflation, yet he has to be happy with the labor market strength, increased business spending, lower labor costs, and higher productivity. The week ended with the Dow UP 1.4%, to 38,654; the S&P 500 also UP 1.4%, to 4,959; and the Nasdaq UP 1.1%, to 15,629. Overall bond prices also headed north, the 30-Year UMBS 5.5% finishing UP 0.84, at $100.12. Freddie Mac’s Primary Mortgage Market Survey showed the national average 30-year fixed mortgage rate ticked down from the week before. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information. DID YOU KNOW… An online real estate database reports a homebuyer with a $3,000 monthly budget can now afford a $453,000 home—up from $416,000 in October—a $37,000 increase in purchasing power.
  THIS WEEK’S FORECAST
  MORTGAGE APPLICATIONS, SERVICES, JOBLESS CLAIMS… We’ll keep an eye on the Mortgage Bankers Association MBA Mortgage Applications Index to check in on homebuyer activity. The ISM Non-Manufacturing Index is expected to show the dominant services sector of the U.S. economy still growing. Initial Unemployment Claims are forecast to come in lower for the week, indicating a still healthy labor market.
  FEDERAL RESERVE WATCH
  Forecasting Federal Reserve policy changes in coming months. Last week, Fed Chair Powell pretty much shut the door on a rate cut in March, but Wall Street still sees one coming in May and another in June. Note: In the lower chart, a 15.5% probability of change is an 84.5% probability the rate will stay the same. Current rate is 5.25%-5.50%. AFTER FOMC MEETING ON: CONSENSUS Mar 20 5.25%-5.50% May 1 5.00%-5.25% Jun 12 4.75%-5.00%   Probability of change from current policy: AFTER FOMC MEETING ON: CONSENSUS Mar 20 15.5% May 1 66.8% Jun 12 58.6%
  BUSINESS TIP OF THE WEEK
The American Psychological Association reports the average adult attention span is about 47 seconds. It might be even shorter for content on social media. So, when  creating videos, be sure to get straight to the point.
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

Email Me

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.