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| “The chief function of the body is to carry the brain around.”—Thomas A. Edison, American inventor and businessman |
| Spending on residential construction in December went up 1.4% from November, with spending on single-family homes up a solid 1.6%. Spending is up 9.9% on single-families compared to December a year ago. The national S&P Case-Shiller Index reports home prices in November fell a tick, the first dip in 10 months, but they’re up 5.1% annually, and 6.6% by the FHFA price index of homes financed with conforming mortgages. Realtor.com reports active inventory continues to grow. The number of homes for sale not under contract is now 10.1% above the level of a year ago, helped by an increase in new listings, up 2.1% versus last year. |
| NEW HIGHS… The S&P 500 and the Dow logged fresh record highs and the Nasdaq a new 52-week high, as traders sparked to a way-better-than-expected jobs report and strong earnings from some tech giants. January’s 353,000 new Nonfarm Payrolls, 0.6% hike in hourly earnings, and 3.7% unemployment rate delighted traders, who were disappointed Wednesday when Fed Chair Powell pretty much took a March rate cut off the table. Yes, Powell is playing it cautious with rate cuts, fearing a return to rising inflation, yet he has to be happy with the labor market strength, increased business spending, lower labor costs, and higher productivity. The week ended with the Dow UP 1.4%, to 38,654; the S&P 500 also UP 1.4%, to 4,959; and the Nasdaq UP 1.1%, to 15,629. Overall bond prices also headed north, the 30-Year UMBS 5.5% finishing UP 0.84, at $100.12. Freddie Mac’s Primary Mortgage Market Survey showed the national average 30-year fixed mortgage rate ticked down from the week before. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information. DID YOU KNOW… An online real estate database reports a homebuyer with a $3,000 monthly budget can now afford a $453,000 home—up from $416,000 in October—a $37,000 increase in purchasing power. |
| MORTGAGE APPLICATIONS, SERVICES, JOBLESS CLAIMS… We’ll keep an eye on the Mortgage Bankers Association MBA Mortgage Applications Index to check in on homebuyer activity. The ISM Non-Manufacturing Index is expected to show the dominant services sector of the U.S. economy still growing. Initial Unemployment Claims are forecast to come in lower for the week, indicating a still healthy labor market. |
| Forecasting Federal Reserve policy changes in coming months. Last week, Fed Chair Powell pretty much shut the door on a rate cut in March, but Wall Street still sees one coming in May and another in June. Note: In the lower chart, a 15.5% probability of change is an 84.5% probability the rate will stay the same. Current rate is 5.25%-5.50%. AFTER FOMC MEETING ON: CONSENSUS Mar 20 5.25%-5.50% May 1 5.00%-5.25% Jun 12 4.75%-5.00% Probability of change from current policy: AFTER FOMC MEETING ON: CONSENSUS Mar 20 15.5% May 1 66.8% Jun 12 58.6% |
| The American Psychological Association reports the average adult attention span is about 47 seconds. It might be even shorter for content on social media. So, when creating videos, be sure to get straight to the point. |
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.
