![]() There are some good reasons for us to feel confident about the housing market so fun and amazing things may be soon upon us. The latest market analysis from realtor.com reveals this spring will be the hottest buying season yet. The median number of days homes are staying on the market is sixty nine, eight fewer than a year ago and experts predict buying will accelerate, with homes remaining on the market just twenty two days as the spring selling season ramps up. The realtor.com manager of economic research says, "we're already in the thick of the most frenzied spring home buying season on record." There's also good reason to be confident about home buying among the important Millennial generation. A leading provider of loan origination software released a tracking study on that group's activities. The firm's EVP of corporate strategy noted: "Purchase loans are increasing, indicating that Millennials are continuing to enter the first-time home buyer market." In fact, the Mortgage Bankers Association reported purchase applications up 1.0% for the week ending March 31 plus, purchase demand is up as the average loan size for purchase applications set a new record, coming in at $318,200. Seems like amazing things are already happening. Review of Last Week Last week's last trading day began with two out-of-the-ordinary reports. The first was the news of a surprise U.S. missile attack on the Syrian air base believed responsible for a chemical attack earlier in the week. The second was the Bureau of Labor Statistics reveal that a way less than expected 98,000 jobs were added in March. Additional geopolitical concerns included another North Korean missile test, and the diplomatic talks between President Trump and his Chinese counterpart Xi Jinping in Florida. Investors were by no means panicking but all three major stock market indexes closed fractionally lower for the week. Wall Streeters stayed calm as the Syrian action garnered support from several U.S. partners while the President said he had made "tremendous progress" with Xi. Even the jobs report contained comforting items. The Unemployment Rate dropped to 4.5%, its lowest level in almost 10 years. Hourly Earnings continued on an upward trend, rising 0.2% for the month and 2.7% annually. Total hours worked are up 1.4%, so total wages are up 4.1% versus a year ago, good for the housing market, which needs incomes to keep up with home prices. The week ended with the Dow down seven points, to 20656; the S&P 500 down 0.3%, to 2356; and the Nasdaq down 0.6%, to 5878. Geopolitics and the lower than expected jobs number helped some bond prices. The 30YR FNMA 4.0% bond we watch finished the week UP .12, at $105.06. In Freddie Mac's Primary Mortgage Market Survey for the week ending April 6, national average 30-year fixed mortgage rates dropped for the third week in a row, nearing their low for the year. Where are interest rates headed? This Week’s Forecast Consumer spending is a big driver of the economy so we keep an eye on Retail Sales. The overall number is forecast to come in a tick down for March but when you exclude volatile auto sales, growth should continue. The Consumer Price Index (CPI) is predicted to show overall inflation flat in March, although the Core CPI, which excludes volatile food and energy prices, is predicted to be up a bit. 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. Economic Calendar for the Week of April 10th – April 14th Apr 12 10:30 Crude Inventories Apr 13 08:30 Initial Unemployment Claims Apr 13 08:30 Continuing Unemployment Claims Apr 13 08:30 Producer Price Index (PPI) Apr 13 08:30 Core PPI Apr 13 10:00 U. of Michigan Consumer Sentiment Apr 14 08:30 Retail Sales Apr 14 08:30 Retail Sales ex-auto Apr 14 08:30 Consumer Price Index Apr 14 08:30 Core CPI Apr 14 10:00 Business Inventories Federal Reserve Watch Speculative Forecasting Federal Reserve policy changes in coming months: Expectations have firmed a little more for another hike from the Fed in 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 3 0.75%-1.0% Jun 14 1.0%-1.25% Jul 26 1.0%-1.25% Probability of change from current policy: After FOMC meeting on: May 3 5% Jun 14 71% Jul 26 74% 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 Fairway Independent Mortgage Corporation #2289
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