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Brought to you by Ron Schulz |
FOR THE WEEK OF OCTOBER 22, 2018 YOUR WEEKLY SMILE
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I intend to live forever. So far, so good. –Steven Wright, American comic |

![]() MARKET UPDATE
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Hurricane Florence blew September Housing Starts down 13.7% in the South, though they were up 3.8% in the rest of the country. So, starts overall slipped 5.3%, to a 1.201 million annual rate. The National Association of Home Builders chairman noted their confidence index rose on “solid housing demand fueled by a growing economy.” In addition,“lumber prices have declined for three straight months.” September Existing Home Sales were down 3.4%, with Florence contributing to a 5.4% dip in the South. Lack of supply is the prob, but inventories are improving, now up two months in a row after 18 months flat or down. |

![]() REVIEW OF LAST WEEK
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MIXED… The Dow was up, the S&P 500 flat and the Nasdaq down, but this was better than the three prior weeks of declines. As corporate earnings season starts, investors are skittish over interest rates and some of the economic data. Rate worries were somewhat allayed when FOMC Minutes confirmed the Fed’s penchant for gradual hikes, though the hurricane-battered housing data looked bad, same as the lower-than-expected September Retail Sales read. But manufacturing stays strong, in Philadelphia Fed, Empire State and Industrial Production data. And initial jobless claims fell (210,000) while continuing claims sank (1.64 million), indicating good job strength for the housing market. The week ended with the Dow UP 0.4%, to 25444; the S&P 500 virtually flat, at 2768; and the Nasdaq down 0.6%, to 7449. Bonds headed south, led by Treasuries, which finished the week lower. The 30YR FNMA 4.0% bond ended down .24, to $99.89. The national average 30-year fixed mortgage rate dropped back in Freddie Mac’s latest 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?… Attom Data Solutions reports homes remain more affordable than at the height of the housing boom in 2006, when buying a home required 52% of average wages, versus 37% today. |

![]() THIS WEEK’S FORECAST
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HOME SALES SLIP, GDP GROWS… September numbers for both New Home Sales and Pending Home Sales are forecast a tad down, thanks again to Hurricane Florence. Yet the GDP-Advanced read for Q3 should show economic growth still north of 3%, good for jobs, wages and real estate. NOTE: Weaker than expected 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
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Forecasting Federal Reserve policy changes in coming months… The Fed futures market is still betting on no rate hike next month, then a quarter percent uptick in December, but no move in January. Note: In the lower chart, a 6% probability of change is a 94% probability the rate will stay the same. Current Fed Funds Rate: 2.00%-2.25%
Probability of change from current policy:
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![]() BUSINESS TIP OF THE WEEK
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Make a list of your achievements–all you’ve done to get where you are today. Looking at what you’ve already accomplished will boost your confidence and help you achieve even more. |

Ron Schulz
Senior Loan Officer NMLS# 266128 6060 North Central Exp #438
Dallas, TX 75206 |
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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.
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