| QUOTE OF THE WEEK |
| “Price is what you pay, value is what your get.”—Warren Buffett, American investor and philanthropist |
| NATIONAL MARKET UPDATE |
| The Mortgage Bankers Association reports purchase mortgage applications shot up 9% for the week. They see purchase activity, “ahead of last year’s pace…more green shoots as we head into the spring homebuying season.” Spending on residential construction in January came in virtually flat for the month, just a smidge below December’s annual rate. But builder spending is now more than 3% higher than January a year ago. Inventory continues to grow. In February, there were 27.5% more homes for sale than a year ago, the 16th straight month of annual gains! New listings also were higher and the median price lower than a year ago. |
| REVIEW OF LAST WEEK |
| ROUGH RIDE… It was a bumpy week on Wall Street as traders worried about tariffs and economic growth. Tariffs for Canada and Mexico were delayed but the three major stock indexes still booked solid declines for the week. Growth concerns were stoked by some soft corporate earnings and guidance. Plus, February ISM Manufacturing revealed slower activity, rising prices, and weakening employment in that sector. February saw 151,000 new nonfarm payrolls, though the unemployment rate ticked up to 4.1%. But initial jobless claims fell, and February ISM Services came in stronger than expected for that dominant sector of the U.S. economy. The week ended with the Dow down 2.4%, to 42,802; the S&P 500 down 3.1%, to 5,770; and the Nasdaq down 3.5%, to 18,196. Bonds finished a similarly volatile week with losses, the 30-Year UMBS 5.5% down 0.72, to 99.32. In Freddie Mac’s Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate fell again, its biggest weekly decline since mid-September. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information. DID YOU KNOW… Over 60% of the world’s population—4.9 billion people—use social media, and average users spend 2 hours and 31 minutes a day—over 15% of their time awake—on social platforms. |
| THIS WEEK’S FORECAST |
| MORTGAGE APPLICATIONS, INFLATION, CONSUMER SENTIMENT… After last week’s surge, we’ll check to see if MBA Mortgage Applications head up again. Inflation is expected to slow in February by both the Consumer Price Index (CPI) and Producer Price Index (PPI). That could be why economists predict a rebound in the preliminary March University of Michigan Consumer Sentiment survey. |
| FEDERAL RESERVE WATCH |
| Forecasting Federal Reserve policy changes in coming months. The futures market still does not expect the Fed’s first rate cut of the year until June. Note: In the lower chart, the 3% probability of change is a 97.0% probability the rate will stay the same. Current rate is 4.25%-4.50%. AFTER FOMC MEETING ON: CONSENSUS Mar 19 4.25%-4.50% May 7 4.25%-4.50% Jun 18 4.00%-4.25% Probability of change from current policy: AFTER FOMC MEETING ON: CONSENSUS Mar 19 3.0% May 7 35.6% Jun 18 81.2% |
| BUSINESS TIP OF THE WEEK |
| To grow your business online, stop worrying about creating the perfect post or developing the perfect social media plan. It’s authenticity, not perfection, that counts. Show up as yourself, post often, and more people will like and trust you. |
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.
