Inside Lending | Market Snapshot for the Week of February 20, 2024

February 20, 2024/
    QUOTE OF THE WEEK
“If I were two-faced, would I be wearing this one?”—Abraham Lincoln, 16th president of the United States
  NATIONAL MARKET UPDATE
  The Mortgage Bankers Association reports January loan applications for new homes rocketed up 19.1% from a year ago and 38% over December, the strongest January read the MBA has ever recorded. Also on the new homes front, single-family housing starts came in 22% higher and building permits nearly 36% higher than a year ago. In line with that, the builder confidence index rose to its highest level since last August. Market data firm Altos Research reports there were 495,000 unsold single-family homes on the market last week, 12% more than last year, including 52,000 new listings not in contract, the most since 2020.
  REVIEW OF LAST WEEK
  INFLATION SPOILS THE PARTY… The three major stock indexes snapped five straight weeks of gains as traders feared that hotter than expected inflation readings would cause the Fed to delay rate cuts until later in the year. In addition to consumer and wholesale prices heading up in January, retail sales and manufacturing fell, while continuing jobless claims rose, indicating that  people who are out of work are having a harder time finding a job. Yet University of Michigan Consumer Sentiment edged higher in February, showing consumers are feeling a little better about the economy, and Q4 corporate earnings reports keep coming in better than expected. The week ended with the Dow down 0.1%, to 38,628; the S&P 500 down 0.4%, to 5,006; and the Nasdaq down 1.3%, to 15,776. Inflation-hating bonds fell as well, the 30-Year UMBS 5.5% ending down 0.12, to $99.01. Freddie Mac’s Primary Mortgage Market Survey reported a small rise in the national average 30-year fixed mortgage rate. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information. DID YOU KNOW… Optimal Blue, a mortgage marketing technology firm, saw an encouraging start to 2024, with a seasonal 38% gain in purchase mortgage rate lock volume in January.
  THIS WEEK’S FORECAST
  EXISTING HOME SALES, JOBLESS CLAIMS, FED MINUTES… The holiday-shortened week will give us data on January Existing Home Sales, which are predicted to show a gain over December. Initial Jobless Claims are expected to inch up a bit, but still remain below recession levels. We’ll also see FOMC Minutes from the Fed’s last meet, and look for indications of when rate cuts may begin.
  FEDERAL RESERVE WATCH
  Forecasting Federal Reserve policy changes in coming months. Last week’s inflation blip left Wall Street expecting no rate cuts from the Fed until a quarter percent drop in June. Note: In the lower chart, a 10.5% probability of change is an 89.5% 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 5.25%-5.50% Jun 12 5.00%-5.25%   Probability of change from current policy: AFTER FOMC MEETING ON: CONSENSUS Mar 20 10.5% May 1 35.5% Jun 12 74.2%
  BUSINESS TIP OF THE WEEK
In business, it’s easy to get caught up focusing on results. Better to focus on the value you can provide your clients. Identify their needs and dreams, then deliver on them. The results you’ll get will likely be way better than you ever expected.
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.