Inside Lending | Market Snapshot for the Week of December 2, 2024

December 2, 2024/
QUOTE OF THE WEEK
“I once wanted to become an atheist, but I gave up—they have no holidays.”—Henny Youngman, American comedian
  NATIONAL MARKET UPDATE
Pending Home Sales (signed contracts on existing homes) rose in October for the third straight month and are more than 5% up from last year. The National Association of Realtors noted, “Homebuying momentum is building.” October New Home Sales didn’t fare so well, down over 17%, as two hurricanes delayed sales in the south. But good news for buyers, the median new home sales price is down 5% and completions are up over 265% versus 2022. Case-Shiller home prices booked their sixth straight month of slowing annual price gains. Home price growth also slowed in the FHFA index, continuing a trend that began in the fourth quarter last year.
  REVIEW OF LAST WEEK
BLACK FRIDAY BOOST… The week ended with stock prices heading up while retail prices headed down. The Dow and S&P 500 finished November at record highs, capping off their best monthly performances in a year. The holiday-shortened week offered a variety of economic news. We got PCE prices rising at a 2.3% annual rate overall, 2.8% excluding volatile food and energy—still above the Fed’s 2% target. But durable goods orders bounced back a tick in October after dropping three of the past four months. Plus, Preliminary Q3 GDP had the economy growing at a modest 2.8%, and initial jobless claims fell, though continuing claims rose. The week ended with the Dow UP 1.4%, to 44,911; the S&P 500 UP 1.1%, to 6,032; and the Nasdaq UP 1.1%, to 19,218. Bonds booked strong performances overall, though the 30-Year UMBS 5.5% slipped 0.12, to $98.18. Freddie Mac’s Primary Mortgage Market Survey reported the national average 30-year fixed mortgage rate went down a tad. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information. DID YOU KNOW… Serious homebuyers are showing up. The Mortgage Bankers Association reports that last week the seasonally adjusted index of purchase mortgage applications shot up 12% from the week before.
  THIS WEEK’S FORECAST
CONSTRUCTION SPENDING, MORTGAGE APPLICATIONS, CONSUMER SENTIMENT, JOBS… October Construction Spending is predicted to increase overall, but our interest will be the residential part. We’ll also keep an eye on the MBA Mortgage Applications Index to look for more buyer activity. Analysts expect the University of Michigan Consumer Sentiment-Preliminary read to move up in December. November should post considerably more new Nonfarm Payrolls than October, though the Unemployment Rate is forecast to move up.
  FEDERAL RESERVE WATCH
Forecasting Federal Reserve policy changes in coming months. The market sees a quarter percent rate cut in December, then a hold. The consensus is for the Fed to stay there in March but sentiment is mounting for another quarter percent drop. Note: In the lower chart, the 65.2% probability of change is a 65.2% probability the rate will drop. Current rate is 4.50%-4.75%. AFTER FOMC MEETING ON: CONSENSUS Dec 18 4.25%-4.50% Jan 29 4.25%-4.50% Mar 19 4.25%-4.50%   Probability of change from current policy: AFTER FOMC MEETING ON: CONSENSUS Dec 18 65.2% Jan 29 42.6% Mar 19 48.9%
  BUSINESS TIP OF THE WEEK
The more you learn, the more you earn. Warren Buffet: “Generally speaking, investing in yourself is the best thing you can do. Anything that improves your own talents—nobody can tax it or take it away from you…. But if you’ve maximized your talent, you’ve got a tremendous asset that can return 10-fold.”
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.