More First Time Home Buyers by Ron Schulz

For the week of June 11, 2018 — Vol. 16, Issue 24

>> Market Update

QUOTATION OF THE WEEK…“The best way to keep one’s word is not to give it.” –Napoleon Bonaparte, French statesman and military leader

INFO THAT HITS US WHERE WE LIVE… According to Bloomberg, first-time buyers accounted for almost 50% of conventional purchase mortgages backed by Freddie Mac in the first quarter this year.

And the beat goes on: Ellie Mae’s latest Millennial Tracker reports that sector of the population bought new homes in record numbers during April. 

Also in the first quarter of 2018, homeowners with mortgages watched their equity grow by 13.3%, or over $1 trillion, as tracked in the latest CoreLogic Home Equity Report.

BUSINESS TIP OF THE WEEK… Your attitude determines your altitude. Stay positive. Start the day with affirmations of all your strengths. In setbacks, look for opportunities. See problems as challenges you’ll ultimately overcome.

>> Review of Last Week

FOCUS ON THE FUNDAMENTALS… Despite tons of trade yak in the media, investors stuck to economic fundamentals and sent the Dow to its best gain since March and the S&P 500 and the Nasdaq up for the third straight week, the Nasdaq to a new record.

Those economic fundamentals have been quite positive: a very healthy labor market, record high consumer confidence and a continued increase in business investment.

Last week’s data showed accelerating growth in the services sector: the Purchasing Managers Services Index hit a three-year high. Economists now predict 3.3% GDP growth in Q2, boosted apparently by the tax cuts.

The week ended with the Dow UP 2.8%, to 25317; the S&P 500 UP 1.6%, to 2779; and the Nasdaq UP 1.2%, to 7646.

Bonds ended Friday flat to off a bit, taking a pause before Fed week. The 30YR FNMA 4.0% bond ended down .35, to $101.59. Freddie Mac’s latest Primary Mortgage Market Survey showed the national average 30-year fixed mortgage rate dipping two weeks in a row. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.

DID YOU KNOW?… A recent survey reports 60% of respondents describe their dream home as a new build with a little more than 2,000 square feet; 46% say the family room is the space they’ll most likely use for entertaining.

>> This Week’s Forecast

INFLATION AND RETAIL SALES GROW, THE FED HIKES Welcome to Fed week where things should head up, including Consumer Price Index (CPI) inflation and Retail Sales. With prices and the economy on the rise, the Fed may feel even more comfortable with their FOMC Rate Decision to hike, a move the market sees as certain as sunrise tomorrow.

>> The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of Jun 11 – Jun 15

Date Time (ET) Release For Consensus Prior Impact
Tu
Jun 12
08:30 Consumer Price Index (CPI) May 0.3% 0.2% HIGH
Tu
Jun 12
08:30 Core CPI May 0.2% 0.1% HIGH
Tu
Jun 12
08:30 Treasury Budget May NA -$88.4B Moderate
W
Jun 13
08:30 Producer Price Index (PPI) May 0.3% 0.1% Moderate
W
Jun 13
08:30 Core PPI May 0.2% 0.2% Moderate
W
Jun 13
10:30 Crude Inventories 06/09 NA +2.1M Moderate
W
Jun 13
14:00 FOMC Rate Decision 06/13 1.75%-2.00% 1.50%-1.75% HIGH
Th
Jun 14
08:30 Initial Unemployment Claims 06/09 223K 222K Moderate
Th
Jun 14
08:30 Continuing Unemployment Claims 06/02 NA 1.741M Moderate
Th
Jun 14
08:30 Retail Sales May 0.4% 0.3% HIGH
Th
Jun 14
10:00 Business Inventories Apr 0.3% 0.0% Moderate
F
Jun 15
08:30 NY Empire Manufacturing Jun 20.0 20.1 Moderate
F
Jun 15
09:15 Industrial Production May 0.2% 0.7% Moderate
F
Jun 15
09:15 Capacity Utilization May 78.1% 78.0% Moderate
F
Jun 15
10:00 U. of Michigan Consumer Sentiment – preliminary Jun 99.0 98.0 Moderate

 

>> Federal Reserve Watch

Forecasting Federal Reserve policy changes in coming months… It will be a surprise on Wednesday if the Fed doesn’t hike a quarter percent. But that rate should hold until September. Note: In the lower chart, a 91% probability of change is only a 9% probability the rate will stay the same.

Current Fed Funds Rate: 1.50%-1.75%

After FOMC meeting on: Consensus
Jun 13 1.75%-2.00%
Aug   1 1.75%-2.00%
Sep 26 2.00%-2.25%

 

Probability of change from current policy:

After FOMC meeting on: Consensus
Jun 13          91%
Aug   1          10%
Sep 26           68%
Ron Schulz
Senior Loan Officer
NMLS# 266128

6060 North Central Exp #438
Dallas, TX 75206

Office: 214-346-5279
Mobile: 214-794-4014
ron.schulz@supremelending.com
www.ronschulz.com

This post is an advertisement for Ron Schulz. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice, or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in this message is the property of Supreme Lending and cannot be reproduced for any use without prior written consent. This message is intended for business professionals only and is not intended for distribution to consumers or other third parties. The material does not represent the opinion of Supreme Lending. EVERETT FINANCIAL, INC. D/B/A SUPREME LENDING NMLS ID #2129 (www.nmlsconsumeraccess.org) 14801 Quorum Dr., #300, Dallas, TX 75254. 877-350-5225. Copyright © 2018. Not an offer or agreement. Information, rates, & programs are subject to change without prior notice. Not available in all states. Subject to credit & property approval. Not affiliated with any government agency. AZ Mortgage Banker License 0925918, AZ Principal Office: 25030 S 190th Street, Queen Creek, AZ 85142. Licensed by the Department of Business Oversight under the CA Residential Mortgage Lending Act License 4130655. CO Mortgage Company – Regulated by the Division of Real Estate. Delaware Lender License 10885. GA Mortgage Lender License 22114– Georgia Residential Mortgage Licensee. IL Residential Mortgage License MB.6760323-DBA1– Illinois Residential Mortgage Licensee. MA Mortgage Broker License MC2129. MA Mortgage Lender License MC2129. Licensed by the N.J. Department of Banking and Insurance – New Jersey Residential Mortgage Lender License. Licensed Mortgage Banker-NYS Department of Financial Service. NY Mortgage Banker License B501049. Ohio Mortgage Broker Act Certificate of Registration MB.804158.000. Ohio Mortgage Loan Act Certificate of Registration SM.501888.000. OR Mortgage Lending License ML-4265. Licensed Mortgage Banker by the PA Department of Banking – Pennsylvania Mortgage Lender License 45048. Rhode Island Licensed Lender 20142998LL.

Leave a Reply