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

April 8, 2024/
    QUOTE OF THE WEEK
“Executive ability is deciding quickly and getting somebody else to do the work.”—Earl Nightingale, American motivational speaker and author
  NATIONAL MARKET UPDATE
  Spending on residential construction increased 0.7% in February, and is up 6.3% for the year. The gain was led by a 1.4% monthly jump in single-family home building, which is now up 17.2% the past year. Altos Research reports sellers are coming back—last week, new listings logged in 18% higher than a year ago. The total inventory of single-family homes is now 26% higher than a year ago, having climbed 20 weeks in a row. In 2023, homeowner equity totaled almost $32 trillion, more than twice the $15 trillion in 2006, the previous peak. Sellers of course can use this equity for a larger down payment to reduce monthly payments on their next home.
  REVIEW OF LAST WEEK
  WEAK WEEK… The major stock indexes all booked weekly losses, the Dow its worst since March of last year, in spite of a better-than-expected March jobs report, which sparked a big rally on Friday. The U.S. added 303,000 new jobs in March, though most were part time, as full-time employment has in fact declined the past year.Still, the report could delay rate cuts, along with sticky PCE inflation and rising oil prices. Yet ISM Manufacturing saw that sector expand after contracting for 16 months. The far larger services sector also expanded (though at a slower rate), and initial weekly jobless claims are still far from recession territory. The week ended with the Dow down 2.3%, to 38,904; the S&P 500 down 1.0%, to 5,204; and the Nasdaq down 0.8%, to 16,249. Bond prices were hit pretty hard too, though the 30-Year UMBS 5.5% fell only .13, to $99.08. In Freddie Mac’s Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate showed little movement. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.   DID YOU KNOW… CoreLogic reports that after reaching an all-time high in October 2023, the average down payment for an American home ended the year at 16%, equating to an average amount of about $84,000.
  THIS WEEK’S FORECAST
  MORTGAGE APPLICATIONS, INFLATION, FED MINUTES… We’ll check the weekly MBA Mortgage Applications Index to gauge the spring housing market. Economists expect the March Consumer Price Index (CPI) and wholesale Producer Price Index (PPI) to report inflation still significantly above the Fed’s 2% target. We’ll also examine the FOMC Minutes from the Fed’s March meet for indications of when rate cuts might begin.
  FEDERAL RESERVE WATCH
  Forecasting Federal Reserve policy changes in coming months. A slim majority of Fed watchers now expects the Fed to hold the rate where it is through June, then deliver the first rate cut in July. Note: In the lower chart, a 6.7% probability of change is an 93.3% probability the rate will stay the same. Current rate is 5.25%-5.50%. AFTER FOMC MEETING ON: CONSENSUS May 1 5.25%-5.50% Jun 12 5.25%-5.50% Jul 31 5.00%-5.25%   Probability of change from current policy: AFTER FOMC MEETING ON: CONSENSUS May 1   6.7% Jun 12  49.1% Jul 31  70.2%
  BUSINESS TIP OF THE WEEK
What you fear the most is probably what you most need to do. Are you afraid to make a video? Go shoot one. Are you afraid to call that past client you haven’t been in touch with? Pick up the phone. Overcome the fear and you’ll see the results you’re looking for on the other side.
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.