Pending Homes Sales Jump by Ron Schulz



Brought to you by Ron Schulz




For the week of July 6, 2020




  “The secret of success is to do the common thing uncommonly well.”—John D. Rockefeller Jr., American financier and philanthropist   





The National Association of Realtors Pending Home Sales [] index of contracts signed on existing homes surged 44.3% in May, its biggest gain since 2001. All regions were up, though the overall index is still down a smidge annually.

The NAR chief economist: “The outlook has significantly improved, as new home sales are expected to be higher this year than last, and annual existing home sales are now projected to be down by less that 10%.”

Plus: “All figures light up in 2021 with positive GDP, employment, housing starts and home sales.” Next year’s NAR forecast calls for sales of 5.35 million existing homes and 800,000 new ones.






ECONOMY RECOVERS, STOCK MARKET TOO… Economic data has been encouraging for a while, but last week’s blow-out reports showed investors the economy really is headed back up, and stocks responded in kind.

Growing at the fastest rate ever, an astonishing 4.8 million new Nonfarm Payrolls were added in June, shattering forecasts, and dropping the unemployment rate more than two percentage points. 

With the largest monthly gain in more than 40 years, the ISM Manufacturing Index revealed that key economic sector was growing again in June. Economists say full recovery is still a long way off, but there’s no question it’s begun.

The week ended with the Dow UP 3.2%, to 25,827; the S&P 500 UP 4.0%, to 3,130; and the Nasdaq UP 4.6%, to 10,208.

Cautious investors remained interested in bonds, supporting prices. The UMBS 3.5% ended up 0.05, at $105.22. In Freddie Mac’s Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate set a new all-time record low. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.

DID YOU KNOW?… Compared to a year ago, home prices are higher, but monthly payments are lower, thanks to the drop in mortgage rates. The median asking price on homes listed in May 2020 was $18,000 higher than May 2019, yet the median monthly payment fell to $1,170 from $1,225 a year ago.






SERVICES REBOUNDS, JOBLESS CLAIMS RECEDE, INFLATION OK… The economy’s services sector, providing most of our jobs, should climb close to a growth read from the ISM Non-Manufacturing Index. Going the other way, happily, is the forecast for Initial Unemployment Claims, while the Producer Price Index (PPI) is expected to show wholesale prices remain under control.

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.






Forecasting Federal Reserve policy changes in coming months… Virtually every Fed watcher on earth expects the central bank will not hike current rock-bottom rates until well in the future. 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%

Jul 29 0.00%-0.25%
Sep 16 0.00%-0.25%
Nov 5 0.00%-0.25%


Probability of change from current policy:

Jul 29     0%
Sep 16     0%
Nov 5     0%






  When you switch attention between tasks, you lose focus. Instead of multitasking, focus on one thing at a time, long enough to complete it. Studies found you’ll actually get more done than when you multitask, and with higher-quality results.   


  Ron Schulz
Senior Loan Officer
NMLS# 266128

5612 Richmond Ave
Dallas, TX 75206

Office: 214-346-5279
Mobile: 214-794-4014 []







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 ( 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