Home Sales Surge by Ron Schulz

 

 

Brought to you by Ron Schulz

 

 

   

For the week of July 27, 2020

 

 

QUOTE OF THE WEEK

 
  “If you really want to do something, you’ll find a way. If you don’t, you’ll find an excuse.”—Jim Rohn, American entrepreneur, author, and motivational speaker  

 

   

NATIONAL MARKET UPDATE

 
   

The V-shaped housing recovery continues. New Home Sales [em.mediacenternow.com] soared in June to a level higher than the one they reached before the shutdown–up 13.8% for the month, posting their highest annual sales rate since 2007!

Existing Home Sales [em.mediacenternow.com] spiked 20.7% in June, their biggest monthly gain ever. Sales are still down 11.3% from a year ago, but demand is strong–62% of homes sold were on the market less than a month.

Attom Data [em.mediacenternow.com] reports the typical home-sale profit hit $75,971 in the second quarter this year. That’s a 36.3% return on investment (ROI) from the original price for home sellers, a new post-recession high.

 

 

   

REVIEW OF LAST WEEK

 
   

MIXED FEELINGS… Wall Street saw a few noteworthy developments to feel good about, and a few to worry over. The net result? The three major stock indexes saw modest declines at the end of a light data week.

Points of worry included initial jobless claims inching up after shutdowns in states with “second wave” coronavirus infections. There were also concerns over tensions with China and delays around an upcoming economic relief bill.

But we got blow-out housing market reports, and continuing jobless claims keep falling. Plus, quarterly corporate earnings have exceeded expectations, and there were signs of progress on the vaccine front.

The week ended with the Dow down 0.8%, to 26,470; the S&P 500 down 0.3%, to 3,216; and the Nasdaq down 1.3%, to 10,363.

Bonds didn’t do much, some posting slim losses, others slim gains. The UMBS 3.0% went down 0.9, to $105.27. In Freddie Mac’s Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate was up slightly from the prior week’s record low. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.

DID YOU KNOW?… The housing market’s recovery is doing a nice job relieving the shutdown’s stress on the overall economy. That’s because housing related expenditures account for about 15% of the country’s GDP!

 

 

   

THIS WEEK’S FORECAST

 
   

PENDING HOME SALES UP IN A DATA PACKED WEEK… June Pending Home Sales should show contracts signed on existing homes up again. But Consumer Confidence might be off a little, while the GDP-Advanced read reflects the full impact of the shutdown in Q2. But Initial Unemployment Claims should fall, while Personal Spending has consumers contributing to the recovery, Core PCE Prices keep inflation in check, and the Fed leaves rates alone.

NOTE: Weaker economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and higher loan rates.

 

 

   

FEDERAL RESERVE WATCH

 
   

Forecasting Federal Reserve policy changes in coming months… No one sees the Fed touching rates this week, or any time before the economy fully returns to where it was before the shutdown. Note: In the lower chart, a 0% probability of change is a 100% certainty the rate will stay the same.

Current Fed Funds Rate: 0%-0.25%

AFTER FOMC MEETING ON: CONSENSUS
Jul 29 0.00%-0.25%
Sep 16 0.00%-0.25%
Nov 5 0.00%-0.25%

 

Probability of change from current policy:

AFTER FOMC MEETING ON: CONSENSUS
Jul 29     0%
Sep 16     0%
Nov 5     0%

 

 

 

   

BUSINESS TIP OF THE WEEK

 
  With prospects and clients, do less talking and more listening. The more you listen, the quicker the relationship naturally grows, while you gain insight into what it will take to fulfill their wants and needs.   

 

  Ron Schulz
Senior Loan Officer
NMLS# 266128

5612 Richmond Ave
Dallas, TX 75206

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

 

   

 

[em.mediacenternow.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. ADVERTISEMENT. Offer not contingent on use of specific settlement service provider. ADVERTISEMENT. EVERETT FINANCIAL, INC. D/B/A SUPREME LENDING NMLS ID #2129 (www.nmlsconsumeraccess.org [nmlsconsumeraccess.org]) 14801 Quorum Dr., #300, Dallas, TX 75254. 877-350-5225. Copyright © 2020. 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. Supreme Lending is required to disclose the following license information: AZ Mortgage Banker License 0925918. 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