Inside Lending | Market Snapshot for the Week of May 12, 2025

May 12, 2025/
  QUOTE OF THE WEEK
“Buy land, they’re not making it anymore.”—Mark Twain, American writer and humorist 
  NATIONAL MARKET UPDATE
  The Mortgage Bankers Association reported purchase mortgage applications rose for the week, up 11% overall, and up 13% for conventional mortgages—“a surprisingly strong move” for people who are “more apt to be move-up buyers.” Realtor.com says the spring housing market is “in full bloom.” Last week, the number of homes for sale hit its highest level since 2019, with new listings the highest since mid-2022, and seller price reductions ahead of last year. ATTOM data found the most active times of the year are ahead. From 2015 through 2024, June saw more than 4.7 million home sales—the most for any month—followed by August (over 4.6 million) and July (over 4.5 million).
  REVIEW OF LAST WEEK
  TRADE WINDS… The atmosphere got stormy for a while on Wall Street, then trade winds blew fair—thanks to a tariff deal with the U.K. and the weekend start to talks with China—so stocks ended off just a bit for the week. Downward pressure on equities came when the March trade deficit hit a new record, as imports surged to beat tariffs. Also, thanks to weak productivity, Q1 unit labor costs jumped, although that didn’t hurt Q1 corporate profits. But the ISM Services read showed growth accelerated in the services sector in April—and that accounts for about 72% of the economy. Plus, initial jobless claims dropped, remaining far below recession-like levels. The week ended with the Dow down 0.2%, to 41,249; the S&P 500 down 0.5%, to 5,660; and the Nasdaq down 0.3%, to 17,929. Bond prices overall were also down slightly, the 30-Year UMBS 5.5% slipping 0.11, to 99.04. Freddie Mac’s Primary Mortgage Market Survey reported the national average 30-year fixed mortgage rate unchanged 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… First American Data & Analytics reported the rate of home price growth in March hit a 13-year low, up just 1.8%, noting “household income growth is now outpacing house price appreciation,” increasing affordability.
  THIS WEEK’S FORECAST
  HOME BUILDING, RETAIL SALES, INFLATION… The forecasts are for Housing Starts to move up in April but for Building Permits to slow a tiny bit. April Retail Sales should continue to increase, as the economy remains in growth mode. After dipping in March, the Consumer Price Index (CPI) is expected to report inflation inched up a tad in April.
  FEDERAL RESERVE WATCH
  Forecasting Federal Reserve policy changes in coming months. Given Fed Chair Powell’s comments last week, the Street doesn’t expect the year’s first rate cut until July, then a hold in September. Note: In the lower chart, the 17.3% probability of change is an 82.7% probability the rate will stay the same. Current rate is 4.25%-4.50%. AFTER FOMC MEETING ON: CONSENSUS Jun 18 4.25%-4.50% Jul 30 4.00%-4.25% Sep 17 4.00%-4.25%   Probability of change from current policy: AFTER FOMC MEETING ON: CONSENSUS Jun 18  17.3% Jul 30  59.1% Sep 17  41.8%
  BUSINESS TIP OF THE WEEK
Facts tell, but stories sell. Don’t skimp on the facts when presenting to prospects, but also put together a story about how their purchase will enhance their lives. Be specific, including details they can relate to. Storytelling is a game changer.
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.
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Jim Passi - Citiwide Home Loans

Jim Passi
Regional Manager
NMLS# 158000

1121 E. Main Street, Suite 121
St. Charles, IL 60174
Mobile: 847-899-1813
Email: jim.passi@alamedamortgage.com

Email Me

This testimony is from my

This testimony is from my experience being a first-time home buyer going through the process of purchasing a home with Jim Passi from City Wide home loans. Let me just start off by saying how reliable, courteous, genuine, informational and hardworking Jim Passi is. Jim is not like a lot of other loan officers. My house I purchased for under 160 grand, not a huge real estate deal. From experience with other loan officers they don’t want to deal with a smaller purchase or work on a loan that might be difficult. With our credit score being low and work history not at expectations I was almost positive I would have to wait a year or maybe two years before being approved and close on a house. I definitely had doubts that I would be a home owner, Jim worked hard and stayed in contact with us updating us almost every day of the process, even during evening hours and weekends during the stressful underwriting process. Communication is key and I give Jim a 5-star rating with that. I consider myself an average blue-collar hard-working guy that has experienced hardships during life. Jim was never turned away by the hardships, he was understanding of them and I feel like it made him work even harder to make this process a success.

I just successfully closed on a house with my fiancé. Jim did what I thought was impossible. Again, with our credit score being under 600 and spotty work history it was a difficult process that became a success with a lot of hard work. Jim also got me the best interest rate that was available. He was constantly checking the market and keeping me informed on what was available. He wanted me to take my time and make sure what rate was in our best interest. Jim has a cretin genuine care for his clients and speaking with him so much during this process I know he truly cares and wants to help people. Even after we closed Jim called and congratulated us with excitement. Jim made a dream come true for us that I was sure we would have to wait for. I’m just going to say if he made my dream come true with all the problems I had he can make a lot of others come true for any one in a similar situation. Jim Passi is highly recommended.

Tim A.