| QUOTE OF THE WEEK |
| “If you see someone without a smile today, give ‘em yours.”—Dolly Parton, American singer, songwriter, actress, and philanthropist |
| NATIONAL MARKET UPDATE |
| The Mortgage Bankers Association (MBA) reported purchase mortgage applications rocketed up 10% over the prior week, coming in 24% higher than a year ago—the strongest pace in 15 months. Spring homebuying has sprung! The MBA also revealed its Mortgage Credit Availability Index (MCAI) increased in March to the highest level in more than two years. They say increases in the MCAI “are indicative of loosening credit.” Data firm Intercontinental Exchange found home price growth slowing in 90% of U.S. markets, cooling to 2.7% in February, then dipping to 2.2% in March, as inventory levels rose to 27% above last year. |
| REVIEW OF LAST WEEK |
| ROLLER COASTER UP… President Trump’s 90-day suspension of reciprocal tariffs sent stocks to historic gains Wednesday, sharp losses Thursday, then a nice rebound Friday that left equities way ahead for the week. Tariff-induced inflation fears left University of Michigan Consumer Sentiment at its lowest level since 2022, yet the March Consumer Price Index (CPI) reported the first monthly decline in consumer prices since COVID. Annual CPI inflation dropped from 2.8% to 2.4%—even with higher tariffs already in place on steel, aluminum, and imports from China! Plus, low initial jobless claims showed a solid labor market and an expanding economy. The week ended with the Dow UP 5.0%, to 40,213; the S&P 500 UP 5.7%, to 5,363; and the Nasdaq UP 7.3%, to 16,274. Bond prices sank sharply, the 30-Year UMBS 5.5% dropping 2.06, to 98.17. The national average 30-year fixed mortgage rate continued to trend down 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… Zillow says listings with 250 daily views, 10 daily shares, or five daily saves typically “move to pending status in a week”; and listings with 500+ daily views, 20 daily shares, or 10 daily saves “often sold for more than the list price.” |
| THIS WEEK’S FORECAST |
| HOME BUILDING, MORTGAGE APPLICATIONS, RETAIL SALES… Analysts expect Housing Starts to slow a trifle in March, but new Building Permits to hold at their prior pace. We check the MBA Mortgage Applications Index to hopefully see buyer activity staying on its spring climb. The forecast is for Retail Sales to gain in March, a sign consumer spending continues to grow the economy. |
| FEDERAL RESERVE WATCH |
| Forecasting Federal Reserve policy changes in coming months. The consensus in the futures market is still for the Fed to do a rate cut in June, followed by another in July. Note: In the lower chart, the 20.0% probability of change is an 80.0% 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 3.75%-4.00% Probability of change from current policy: AFTER FOMC MEETING ON: CONSENSUS May 7 20.0% Jun 18 78.0% Jul 30 63.7% |
| BUSINESS TIP OF THE WEEK |
| To stay fresh, regularly ask yourself why you do what you do, what sets you apart from the competition, and what values guide you. The answers are key to crafting authentic messages that resonate with your audience but can evolve over time. |
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.
