| QUOTE OF THE WEEK |
| “I don’t try to describe the future. I try to prevent it.”—Ray Bradbury, celebrated American science fiction author |
| NATIONAL MARKET UPDATE |
| The Mortgage Bankers Association reports purchase mortgage applications rose again, up 8% on the week. They added: “As we enter the spring homebuying season, the purchase index was more than 4% higher than a year ago.” Nationally, home prices are stabilizing. Realtor.com notes that last week was “the 41st consecutive week that the national median home list price has either remained steady or declined compared to the same week last year.” They also say the best time to sell is the week of April 13, with higher home prices and buyer demand,” and lower competition from other sellers. Zillow claims sellers get the best returns if they list in the second two weeks of May. |
| REVIEW OF LAST WEEK |
| BEST DAY SINCE NOVEMBER… Friday, stocks had their best day since the election, but ended the week down after concerns about a government shutdown, trade wars, and economic growth hammered equities earlier in the week. But shutdown fears abated after the Democrat’s senate leader said he would vote to keep the government funded, and trade tensions eased after a productive meeting between Ontario Premier Ford and Secretary of Commerce Lutnick. Plus, the economy appears to be improving, with CPI inflation down to 2.8%, mortgage applications up for another week, initial jobless claims very low, and small business optimism very high. The week ended with the Dow down 3.1%, to 41,488; the S&P 500 down 2.3%, to 5,639; and the Nasdaq down 2.4%, to 17,754. Bonds overall were little changed for the week, the 30-Year UMBS 5.5% down just 0.12, to 99.20. Freddie Mac’s Primary Mortgage Market Survey reported the national average 30-year fixed mortgage rate “remained essentially flat from last week.” Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information. DID YOU KNOW… In 2024, the number of new homes built exceeded the number of new households for the first time in eight years—and the number of completed homes was the highest in nearly two decades. |
| THIS WEEK’S FORECAST |
| HOME SALES, HOME BUILDING, RETAIL SALES, THE FED… February’s Existing Home Sales report should show a small monthly dip. But more new homes are on the way, thanks to a bump in February Housing Starts. The economy is expected to start looking better, with a nice gain in Retail Sales for February. Economists predict the Fed’s FOMC Rate Decision will be another hold. |
| FEDERAL RESERVE WATCH |
| Forecasting Federal Reserve policy changes in coming months. Despite last week’s encouraging inflation read, Fed watchers still think we won’t see the year’s first rate cut until June. Note: In the lower chart, the 1.0% probability of change is a 99.0% 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 1.0% May 7 16.0% Jun 18 82.9% |
| BUSINESS TIP OF THE WEEK |
| If you want to see more growth in your business, set your goals beyond your comfort zone—the amount of business you’re reasonably sure you can close. Giving yourself uncomfortably higher goals creates the momentum that drives growth. |
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.
