Housing Market is in Recovery by Ron Schulz

 

 

Brought to you by Ron Schulz

 

 

   

For the week of July 20, 2020

 

 

QUOTE OF THE WEEK

 
  “Opportunities don’t happen. You create them.”—Chris Grosser, sales consultant  

 

   

NATIONAL MARKET UPDATE

 
   

The National Association of Realtors [em.mediacenternow.com] reports more than nine in ten Realtors say the market is recovering, as they embrace “technology and business practices to ensure the home buying process continued in a safe manner.”

And that recovery is V-shaped. Purchase mortgage applications are up year-over-year between 13% and 33% the past seven weeks, and up 54% for new homes, while pending homes sales rose 44% last month.

Home builders are joining the party too. Housing Starts [em.mediacenternow.com] jumped 17.3% in June to a 1.186 million annual rate. So it’s no surprise the National Association of Home Builders July confidence index tied its March pre-pandemic read!

 

 

   

REVIEW OF LAST WEEK

 
   

MOSTLY UP… Investors sent the Dow and S&P 500 higher on undeniable signs the economic recovery has begun, but they let the Nasdaq take a breather, as pandemic uncertainties kept their enthusiasm in check.

On top of the blow-out Housing Starts, Retail Sales shot up 7.5% in June and are now 1.1% ahead of a year ago, almost back to where they were in February. Initial Jobless Claims dropped for the 15th week in a row.

Industrial Production had its biggest monthly jump since 1959, led by manufacturing (excluding mining and utilities). With the worst economic quarter since World War II behind us, the question now is how soon can we get to full recovery.

The week ended with the Dow UP 2.3%, to 26,672; the S&P 500 UP 1.2%, to 3,225; and the Nasdaq DOWN 1.1%, to 10,503.

Bond price performances ranged from modest retreats to slim gains. The UMBS 3.0% went up 0.17, to $105.36. The national average 30-year fixed mortgage rate dropped again to a new all-time record low 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 [em.mediacenternow.com] reports 36% of Americans say because of the pandemic they’re more likely to buy a home entirely online and 43% say they’re more likely to sell one that way. When the outbreak ends, 30% would still likely buy and 33% would still likely sell a home entirely online.

 

 

   

THIS WEEK’S FORECAST

 
   

NEW AND EXISTING HOME SALES UP, JOBLESS CLAIMS DOWN…The V-shaped housing recovery should continue to develop, as both Existing Home Sales and New Home Sales are forecast up for June. Thankfully, Initial Jobless Claims are expected to keep dropping.

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… The only thing that would surprise Fed watchers would be if the central bankers even hinted that they’d move rates up from their current near zero level. 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

 
  Instead of touting your product or service, be a solution. Tell prospects how you solve their problems and why you do it better. When you land the business, stay focused on solving their problems and watch the relationship grow!   

 

  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.

 

 

 

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