![]() |
Brought to you by Ron Schulz |
FOR THE WEEK OF FEBRUARY 4, 2019 YOUR WEEKLY SMILE
|
||
You don’t have to agree with me, but it’s quicker.–Anon. |

![]() MARKET UPDATE
|
||
The delayed report was worth the wait, as it showed November New Home Sales shot up 16.9%, to a 657,000 annual rate. That’s down from a year ago, but inventory is up by 2,000 units for the month. It was also good to see the median price of a new home is nearly 12% below a year ago. Not so good were Pending Home Sales, down 2.2% in December, indicating lower existing home sales a few months out. Freddie Mac’s January Forecast says “early 2019 data signals a possible turnaround for the year,” with total home sales rising to 6.09 million, thanks to home price gains and interest rates taking a breather. |

![]() REVIEW OF LAST WEEK
|
||
FED UP… Far from discouraging traders, the Fed sent the S&P 500 up to its best January since 1987 by declaring a newly “patient” stance on future rate hikesafter leaving present rates unchanged. The market got a further boost from the resumption of U.S.-China trade talks in Washington, stronger than expected corporate earnings, and a spectacular 304,000 jump in Nonfarm Payrolls in January. Unemployment went to 4.0%, but that’s because of furloughed government workers (who will get paid), and the highest labor force participation rate in six years. January ISM Manufacturing also surprised to the upside. The week ended with the Dow UP 1.3%, to 25064; the S&P 500 UP 1.6%, to 2707; and the Nasdaq UP 1.4%, to 7264. The strong economic data hammered some bonds on Friday, but the 30YR FNMA 4.0% bond ended UP .38, at $102.05. In Freddie Mac’s Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate increased a barely perceptible tick. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information. DID YOU KNOW?… First American’s Real House Price Index reports that with consumer house-buying power factored in, home prices are 35.3% below their 2006 peak and 9% lower than January 2000. |

![]() THIS WEEK’S FORECAST
|
||
SERVICES, PRODUCTIVITY GROW… The ISM Non-Manufacturing Index should show healthy January gains for the services sector that creates most of our jobs. Productivity, closely watched by the Fed, is also expected up in Q4. 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
|
||||||||||||||||||
Forecasting Federal Reserve policy changes in coming months… After no hike from the Fed last week, the Street now sees no rate changes through the beginning of summer. Note: In the lower chart, a 1% probability of change is a 99% probability the rate will stay the same. Current Fed Funds Rate: 2.25%-2.50%
Probability of change from current policy:
|

![]() BUSINESS TIP OF THE WEEK
|
||
In communications that tell prospects why they should use you, be sure to also tell them how to use you. That’s your call to action (CTA). Always include it. |

Ron Schulz
Senior Loan Officer NMLS# 266128 6060 North Central Exp #438
Dallas, TX 75206 |
![]() |
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) 14801 Quorum Dr., #300, Dallas, TX 75254. 877-350-5225. Copyright © 2019. 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.
|