| QUOTE OF THE WEEK |
| “I told my doctor I broke my arm in two places. He told me to keep out of those places.”—Rodney Dangerfield, American comedian, actor, screenwriter, and producer |
| NATIONAL MARKET UPDATE |
| Sales of existing homes bumped up 4.2% in February, while inventory grew 5.1% over the prior month. The National Association of Realtors explained, “more inventory and choices are releasing pent-up housing demand.” The inventory of new homes will also be increasing. In February, builders started construction on 11.2% more homes than January. Plus, completions of single-family homes are 7.1% ahead of where they were a month ago. Zillow projects rents will grow a lot more than home prices this year. With more supply, home prices should go up only 0.6%. But Zillow expects a 2.5% rise for multifamily rents and a 3.6% bump in rents for single-families. |
| REVIEW OF LAST WEEK |
| MARCH GLADNESS… Stocks grabbed a big rebound, with the three major indexes posting weekly gains, as traders scooped up bargains and started feeling better about economic prospects overall. The Fed held rates steady, lowered its growth forecast, and raised its inflation projection, but implied there would be two rate cuts this year, which was music to their ears on Wall Street. Plus, rising for the third straight month, Industrial Production hit an all-time high, Retail Sales rebounded in February, and the Leading Economic Index (LEI) stayed on its upward trend, indicating no imminent recession. The week ended with the Dow UP 1.2%, to 41,985; the S&P 500 UP 0.5%, to 5,668; and the Nasdaq UP 0.2%, to 17,784. Bonds also saw nice gains overall for the week, the 30-Year UMBS 5.5% UP 0.09, to 99.29. There was little weekly movement in the national average 30-year fixed mortgage rate 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… The homeownership rate rose to 65.24% in 2023, up 0.06% over 2022, and 1.7% higher than 10 years earlier—even though home prices rose more than 40% during that decade. |
| THIS WEEK’S FORECAST |
| NEW AND PENDING HOME SALES, HOME PRICES, INFLATION… It should be a good week for housing data. Analyst expect a gain in New Home Sales for February, as well as a rebound for the Pending Home Sales index of signed contracts on existing homes. Price gains are forecast to remain moderate as tracked by the January S&P Case-Shiller Home Price Index. Economists also predict continued moderation in inflation for February as scored by the Fed’s favorite PCE Prices measure. |
| FEDERAL RESERVE WATCH |
| Forecasting Federal Reserve policy changes in coming months. Wall Street expects the Fed’s first rate cut of the year in June, then a hold in July, although sentiment is growing for another drop at that time. Note: In the lower chart, the 12.2% probability of change is an 87.8% probability the rate will stay the same. Current rate is 4.25%-4.50%. AFTER FOMC MEETING ON: CONSENSUS May 7 4.25%-4.50% Jun 18 4.00%-4.25% Jul 30 4.00%-4.25% Probability of change from current policy: AFTER FOMC MEETING ON: CONSENSUS May 7 12.2% Jun 18 81.9% Jul 30 40.3% |
| BUSINESS TIP OF THE WEEK |
| You core value proposition (CVP) defines the unique benefit you deliver—the reason clients choose you over your competition. Be clear on what your CVP is, then make it the cornerstone of all your communications. |
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.
