| QUOTE OF THE WEEK |
| “The secret to longevity is ice cream.”—Paul Marcus, American centenarian |
| NATIONAL MARKET UPDATE |
| Housing Starts rocketed up almost 16% in December, with both single-families and multi-families seeing gains. Building Permits slipped a smidge, but housing completions for the calendar year ran at the fastest pace since 2006. National Association of Home Builders builder sentiment edged higher in January on hopes for an improved economy and regulatory environment. The NAHB is “forecasting a slight gain for single-family housing starts in 2025.” The Mortgage Bankers Association reported total mortgage applications shot up 33.3% from the week before, reaching the highest level in a month, with purchase applications up 27% on heightened homebuyer activity. |
| REVIEW OF LAST WEEK |
| UP WE GO… Traders sent stocks sharply higher, inspired by solid Q4 earnings from big names in the financial sector, and the impending arrival of a new White House administration that is pushing deregulation and lower taxes. Wall Street was also relieved to see Israel and Hamas with a ceasefire agreement. And a better-than feared core-CPI report featured a dip in year-over-year inflation. This also helped bonds, which could benefit mortgage rates. Retail Sales gained in December, although most of the increase came from inflation. However, Industrial Production wrapped up the year on a surprisingly high note, as companies look forward to a healthier domestic business environment. The week ended with the Dow UP 3.7%, to 43,488; the S&P 500 UP 2.9%, to 5,997; and the Nasdaq UP 2.4%, to 19,630. Bonds ended the week ahead overall, the 30-Year UMBS 5.5% UP 0.11, to $98.16. The national average 30-year fixed mortgage rate edged up a tick in Freddie Mac’s Primary Mortgage Market Survey. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information. DID YOU KNOW… In a recent survey, would-be buyers said move-in readiness and the right number of bedrooms were their top-rated home features, but home offices and updated kitchens were now low on the list! |
| THIS WEEK’S FORECAST |
| EXISTING HOME SALES, MORTGAGE APPLICATIONS, CONSUMER SENTIMENT… Economists expect Existing Home Sales to continue climbing in December. We’ll check the MBA Mortgage Applications Index to see if last week’s heightened buyer activity continues. University of Michigan Consumer Sentiment for January should dip slightly from its recent upward moving level. All U.S. financial markets are closed today in observance of Martin Luther King Jr. Day. |
| FEDERAL RESERVE WATCH |
| Forecasting Federal Reserve policy changes in coming months. Despite last week’s inflation read, the futures market still sees no rate cuts at the first three Fed meets this year. Note: In the lower chart, the 0.5% probability of change is a 99.5% 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 4.25%-4.50% Probability of change from current policy: AFTER FOMC MEETING ON: CONSENSUS Jan 29 0.5% Mar 19 28.3% May 7 44.1% |
| BUSINESS TIP OF THE WEEK |
| If you don’t take control of your time, someone else will. Successful people believe in having an untouchable morning routine. This creates the foundation for a day in which you control your time, your mindset, and, ultimately, your 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.
