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Brought to you by Ron Schulz |
FOR THE WEEK OF DECEMBER 17, 2018 YOUR WEEKLY SMILE
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What comes at the end of the Holidays? The letter “s.” |

![]() MARKET UPDATE
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Five weeks in a row, the national average 30-year fixed mortgage rate stayed flat or fell. Freddie Mac‘s chief economist feels these rates, with low unemployment, “should support home sales heading into the early winter months.“ A surge in activity has already started. The Mortgage Bankers Association reports that the seasonally adjusted index for purchase mortgage applications was up a solid 3.0% last week from the week before. We’re even seeing more supply. An online real estate database says housing inventory shot up 5% in November, sending it to a three-year high. This is of course more good news for buyers. |

![]() REVIEW OF LAST WEEK
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BUMPY RIDE SOUTH… Stock prices bounced up and down all week, with the down direction prevailing, as all three major market indexes ended in “correction” territory, 10% off their highs. Traders found it harder to fret over U.S.-China trade tensions after the Chinese resumed buying U.S. soybeans and lifted auto tariffs for 30 days. So Wall Streeters worried instead about slower economic growth in China and the eurozone. Those regions are still growing, though not like we are. Unfortunately, the markets chose to ignore strong Retail Sales and Industrial Production and mild CPI inflation that should keep the Fed from getting aggressive with rate hikes. The week ended with the Dow down 1.2%, to 24101; the S&P 500 down 1.3%, to 2600; and the Nasdaq down 0.8%, to 6911. Bonds rose on the disappointing global economic data, then fell on positive U.S. reports. The 30YR FNMA 4.0% bond went down .25, to $101.03. The national average 30-year fixed mortgage rate fell to its lowest level in three months 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?… The Federal Housing Administration (FHA) announced it is increasing its FHA loan limit ceiling in high-cost areas to $726,525, and its floor to $314,827. These are for FHA loans assigned on or after January 1, 2019, in most of the country. |

![]() THIS WEEK’S FORECAST
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HOME BUILDING, GDP, INFLATION OK, EXISTING HOME SALES NOT SO MUCH… Tomorrow’s November Housing Starts and Building Permits should rise, and Wednesday’s Existing Home Sales slip. The GDP-Third Estimate for Q3 is forecast at a strong 3.5% economic growth rate, while the Core-PCE Prices read is expected to peg inflation up, but pretty much within the Fed’s target range. 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 Funds Futures market is still betting on a small rate hike at Wednesday’s meet, but then no change through March. Note: In the lower chart, a 77% probability of change is a 23% 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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Find your niche–what you love most is what you’ll do best. And remember, what works for others may not work for you. Identify what prospects respond to and take that tack consistently. |

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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