Inside Lending | Market Snapshot for the Week of January 6, 2025

January 6, 2025/
    QUOTE OF THE WEEK
“And now we welcome the new year. Full of things that have never been.”—Rainer Maria Rilke, Austrian poet and novelist
    NATIONAL MARKET UPDATE
  The Pending Home Sales measure of signed contracts on existing homes headed up in November for the fourth month in a row, nearly 7% ahead of last year, and at the highest level since the beginning of 2023. Residential builders spent more on construction overall in November versus the month before. That was 3% more than a year ago, with the monthly gain driven by spending on much-needed single-family homes. Home prices are rising, but slower. The S&P CoreLogic Case-Shiller National index was up 3.6% annually in October, down from 3.9% the prior month. The yearly gain in the FHFA home price index was 2% lower than a year ago.
    REVIEW OF LAST WEEK
  NO SANTA… Friday, the Santa Claus rally period ended with weekly losses for the three major indexes. However, Santa didn’t show in January 2024 either, yet the broad-based S&P 500 went on to post a 23.3% gain for the year. Traders are hopeful but not happy about the economy, as the December ISM report showed manufacturing contracted for the ninth straight month. Wall Street also continues to worry the Fed will slow rate cuts this year.  But stocks rebounded Friday, helped by the low level of initial jobless claims, reflecting a situation where employers are reluctant to let workers go because they have an optimistic view of the prospects for their businesses. The week ended with the Dow down 0.6%, to 42,732; the S&P 500 down 0.5%, to 5,942; and the Nasdaq down 0.5%, to 19,622. Bonds overall finished positive for the week, the 30-Year UMBS 5.5% edging UP .01, to $98.20. Freddie Mac’s Primary Mortgage Market Survey reported the national average 30-year fixed mortgage rate up a tad from the prior week. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.     DID YOU KNOW… Listings in December were 22% higher compared to last year, the fourteenth straight month of annual gains. However, inventory was at its lowest level since June due to seasonality.
    THIS WEEK’S FORECAST
  MORTGAGE APPLICATIONS, SERVICES, JOBS… We’ll check the weekly MBA Mortgage Applications Survey for a rebound in buyer activity after the holidays. The December ISM Services Index is forecast to show a little more expansion in activity for this major sector of the U.S. economy. Economists expect the December jobs report to log a smaller number of new Nonfarm Payrolls,  a lower increase in Average Hourly Earnings, and a hold to the 4.2% Unemployment Rate. 
    FEDERAL RESERVE WATCH
  Forecasting Federal Reserve policy changes in coming months. Wall Street now does not see the Fed’s first rate cut this year until May. Note: In the lower chart, the 11.2% probability of change is an 88.8% probability the rate will stay the same. Current rate is 4.25%-4.50%. AFTER FOMC MEETING ON: CONSENSUS Jan 29 4.25%-4.50% Mar 19 4.25%-4.50% May 7 4.00%-4.25%   Probability of change from current policy: AFTER FOMC MEETING ON: CONSENSUS Jan 29  11.2% Mar 19  45.0% May 7  55.0%
    BUSINESS TIP OF THE WEEK
You know what works best for you. So, schedule your day around the times you’re most productive, then take breaks as needed. Optimizing your performance to your personal preferences will boost your business success.
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.
Posted in
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.