“A two-year-old is kind of like having a blender, but you don’t have a top for it.” -Jerry Seinfeld, American stand-up comedian, actor, writer, producer, and director
The spring buying season started off nicely, as Pending Home Sales reversed course and went up 3.1% in February. This measure of contracts on existing homes indicates more closed sales ahead.
The National Association of Realtors (NAR) chief economist noted, “the expanding economy and healthy job market are generating sizable homebuyer demand.” But supply is tight and prices are up in many markets.
Those higher prices have given homeowners record amounts of home equity, according to Freddie Mac’s Outlook. And that may help supply, as the NAR HOME Survey found that more homeowners believe now is a good time to sell!
BUSINESS TIP OF THE WEEK: The vendors you work with can be great sources of referrals. Cultivate those relationships and don’t forget to send business their way too.
Review of Last Week
After two down weeks, the three major market indexes ended up strongly for the week. The volatility stems from investors’ up and down reactions to the latest news on global trade, the Fed, and tech firms.
But stock prices over the long-term are driven by growth in the economy and corporate earnings, and many analysts say those look positive. Final Q4 GDP came in at 2.9%, pegging economic growth near 3% for the third month running.
Personal Income rose for the second month in a row and Initial Unemployment Claims fell to their lowest level since 1973. No wonder University of Michigan Consumer Sentiment remains at its highest level in 14 years!
The week ended with the Dow up 2.7% to 24143, the S&P 500 up 2.1% to 2642, and the Nasdaq up 1.0% to 7063.
For bonds, the week also ended with solid gains, as the safe haven play continued. The 30YR FNMA 4.0% bond we watch ended this week up .19, at $102.55. When bond prices rise, yields and rates fall, and national average 30-year fixed mortgage rates dipped in Freddie Mac’s latest 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: A new study reveals Millennials are the most rent burdened generation, spending about 45% of income and paying close to $100,000.00 on rent before they reach 30.
This Week’s Forecast
The ISM Index should stay well above the growth threshold of 50, indicating U.S. factories kept humming in March. The jobs market is getting healthier too. Analysts see new Nonfarm Payrolls just below 200,000 and wages up 0.2% by the Hourly Earnings measure.
Federal Reserve Watch
The Fed Futures market sees rates staying where they are in May, but expects the second hike of the year in June.
This Housing Market Monday blog post was written by Shane Campbell, a North Texas Team Preferred Lender with Lending Edge Mortgage. Shane Campbell is a mortgage expert with years of experience in the North Dallas housing market. He is passionate about serving clients while providing them with exceptional customer service and a smooth, professional process. Out of countless lenders, The North Texas Team handpicks the best to make sure you are provided a top-notch customer experience from contract to close. Shane Campbell (NMLS ID#: 1211817) can be reached at (817) 485-4155 or firstname.lastname@example.org. Who you work with matters!