Scott Synovic Mortgage Loan Originator Colorado's Mortgage Expert
  • Introduction
  • Agent Resources
  • Colorado's Mortgage Expert
  • Mortgage Refinance
  • First Time Home Buyers
  • CHFA Down Payment Assistance
  • Metro Mortgage Assistance Plus
  • The HomeReady™ Mortgage
  • Mortgage Blog
  • Renovation Loans
  • Mortgage Loans
  • VA Loans
  • Step 1
  • Step 2
  • Step 3
  • Step 4
  • Mortgage Resources
  • Apply Now
  • searchhotspots
  • Contact

Scott Synovic, CMPS
AnnieMac Home Mortgage
303.668.3350

Mortgage Blog - May 1, 2017

5/1/2017

 
Picture

March New Home Sales zoomed up a way better than expected 5.8%, and are now 15.8% ahead of their pace a year ago h
itting a 621,000 unit annual rate.

Sales rose for the third month in a row, demonstrating unusual stability in what can be very volatile numbers, month to month. Keep in mind, multi-family homes (town homes, urban condos) are not counted in this report.There were 3,000 more unsold new homes where construction had yet to start however the inventory of completed homes was unchanged.

Pending Home Sales took a slight dip in March. This National Association of Realtors (NAR) index of contracts signed on existing homes had put up a string of impressive reads, so tight inventory was the problem, as demand is still strong. The NAR's chief economist observed, "Home shoppers are coming out in droves this spring," noting 42% of homes sold for asking price or more. He forecast existing home sales at 5.64 million for the year, up 3.5% over 2016. The chief economist at a major insurance firm sees sales rising thanks to "solid job gains, faster wage growth, still low, albeit rising, mortgage rates, and faster household formations."

Review of Last Week

 "Thank you very much," said Wall Street to the voters of France as the week began. Sunday's first round of that country's presidential election narrowed the race to Emmanuel Macron, who wants tighter integration with the European Union, enjoying a comfortable lead over Marine Le Pen, who wants a referendum on EU membership. The EU is a positive to investors so this result spurred a stock buying binge the first two days. That was enough, despite some later slumping, to send the three major market indexes up, as the Dow scored its best week of the year, and the techy Nasdaq crossed the 6,000 threshold for the first time ever.

Investor caution came Wednesday with President Trump's outline for tax cuts, encouraging, but lacking details. We also had continuing geopolitical tension about North Korea, and the GDP-Advanced read--up just 0.7% in Q1. Average Q1 growth is just 0.9% since 2011, followed by stronger numbers the rest of the year plus the report said business fixed investment shot up at a 9.4% annual rate, this is a sign of improving economic growth, just like the solid Q1 corporate earnings reports we saw. The Dow has just booked the best performance in the postwar era from Election Day through the 100th day in office for a first term president.

The week ended with the Dow UP 1.9%, to 20941; the S&P 500 UP 1.5%, to 2384; and the Nasdaq UP 2.3%, to 6048.

Bond prices overall ended a tick down for the week, suffering from the good feelings driving up stocks. The 30YR FNMA 4.0% bond we watch finished the week down .03, at $105.30. For the week ending April 27, Freddie Mac's Primary Mortgage Market Survey reported national average 30-year fixed mortgage rates rising ever so slightly for the first time in five weeks.

Where are interest rates headed?

This Week’s Forecast

The economic data flow will be heavy this week. Key reads will be Personal Spending, predicted up a bit, expected growth in Non farm Payrolls and a nice boost in Hourly Earnings. The ISM Index should also stay in growth territory, solidly above 50, while the Core PCE Prices inflation measure should come in flat. Flat is the forecast for the FOMC Rate Decision, thank you very much, Fed governors.

The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Where are interest rates headed?

Economic Calendar for the Week of May 1st – May 5th

May 1 Personal Income
May 1 Personal Spending
May 1 Core PCE Prices
May 1 ISM Inde
May 3 ISM Services
May 3 Crude Inventories
May 3 FOMC Rate Decision
May 4 Initial Unemployment Claims
May 4 Continuing Unemployment Claims
May 4 Trade Balance
May 4 Productivity - Prelim.
May 4 Unit Labor Costs-Rev.
May 5 Average Workweek
May 5 Hourly Earnings
May 5 Nonfarm Payrolls
May 5 Unemployment Rate
                                                                                                          
Federal Reserve Watch   

Speculative
Forecasting Federal Reserve policy changes in coming months:

Few observers expect a rate hike at this week's FOMC meeting, but the markets are figuring we'll see a quarter percent gain come June.

Note: In the lower chart, a 5% probability of change is a 95% certainty the rate will stay the same.

Current Fed Funds Rate: 0.75%-1.0%

After FOMC meeting on:


May 30.75%-1.0%
Jun 141.0%-1.25%
Jul 261.0%-1.25% 

Probability of change from current policy:

After FOMC meeting on: 

May 3         5%
Jun 14       66%
Jul 26       71%

Where are interest rates headed?

Call me now, 303.668.3350 or click here to apply!

Apply Now!
Get the Insider Track on Interest Rates!

Cheers!

Scott Synovic
Nations Reliable Lending, LLC
Colorado's Mortgage Expert
www.scottsynovic.com
303.668.3350 Direct

NMLS: 253799 / NRL NMLS: 181407
Regulated by the Division of Real Estate

The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial
services and other professionals only. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without errors.


Scott Synovic is a top performing mortgage loan originator providing superior levels of service and satisfaction to clients and business partners in Colorado - www.scottsynovic.com NMLS #253799 AnnieMac Home Mortgage #338923

Comments are closed.

    Colorado's
    Mortgage
    Expert

    Scott Synovic, CMPS
    AnnieMac Home Mortgage

    950 Cherry Street
    Suite #1515
    Denver, Colorado 80246

    303.668 3350 Direct

    Picture
    Picture
    Picture
    Picture
    Picture
    APPLY NOW

    Archives

    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015

    Categories

    All

    RSS Feed

popular pages

Refinance
Eliminate PMI
Consolidate Debt
Mortgage Calculators
How Much is My Home Worth?
Interest Rates

Company

About Annie Mac Home Mortgage
Financing Disclaimer
Contact

mortgage insight

join now
Communications Consent
Scott Synovic NMLS #253799 with AnnieMac Home Mortgage NMLS #338923
NMLS Consumer Access. AnnieMac Home Mortgage

950 South Cherry Street, Suite #1515, Denver, Colorado 80246

Equal Housing Lender licensed through NMLS Regulated by the Division of Real Estate. Licensed Mortgage Loan Originator in Colorado and California. Not endorsed or sponsored by either state or any government agencies.
Picture
Picture
Picture
5280 Magazine Five Star Mortgage Professional
Picture
Picture
© Copyright 2020. All Rights Reserved.
  • Introduction
  • Agent Resources
  • Colorado's Mortgage Expert
  • Mortgage Refinance
  • First Time Home Buyers
  • CHFA Down Payment Assistance
  • Metro Mortgage Assistance Plus
  • The HomeReady™ Mortgage
  • Mortgage Blog
  • Renovation Loans
  • Mortgage Loans
  • VA Loans
  • Step 1
  • Step 2
  • Step 3
  • Step 4
  • Mortgage Resources
  • Apply Now
  • searchhotspots
  • Contact