Daily Rate Update: January 21st-24th

posted in: Uncategorized | 0

Friday – January 24, 2020

The upward momentum in rental prices cooled a bit in December coming in flat for the month, which is a normal seasonal trend. Yardi Matrix reports that the average U.S. rent fell $1 in December to $1,474 and up 3% from December 2018 to December 2019. Rent growth continues to be strong in all regions, led by secondary markets in the West and Southeast.

The S&P 500 opened at a fresh record high this morning before giving up gains as investors look to the solid earnings data that has been released thus far this season. Of the 16% of the S&P 500 companies that have reported, 70% have beaten expectations. Dow components American Express and Intel beat earnings expectations in their latest quarterly numbers – with the latter revising their sales forecast for Q1 2020 higher. Things are real good on both Wall Street and Main Street.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Thursday – January 23, 2020

Homeowners continue to feel the benefits of a strong labor market and continued expanding economy. ATTOM Data Solutions reports that U.S. home sellers nationwide saw a realized home price gain of $65,500 in 2019, up from $58,100 in 2018 and up from $50,027 two years ago. In addition, the latest profit figure, based on median purchase and resale prices, marked the highest level in the U.S. since 2006, a 13-year high. “The nation’s housing boom kept roaring along in 2019 as prices hit a new record, returning ever-higher profits to home sellers and posing ever-greater challenges for buyers seeking bargains. In short, it was a great year to be a seller,” said Todd Teta, chief product officer at ATTOM Data Solutions.

Mortgage rates inched lower in Freddie Mac’s latest survey and remain just above all-time lows. The 30-year fixed-rate mortgage fell five basis points to 3.60% with 0.8 in points and fees. It is the lowest rate in three months and about a quarter-point above the all-time low of 3.35% hit back on May 2, 2013. Sam Khater, Freddie Mac’s Chief Economist said, “The very low rate environment has clearly had an impact on the housing market as both new construction and home sales have surged in response to the decline in rates, the rebound in the economy and improving financial market sentiment.”

The major U.S. stock indexes are under pressure today due to the coronavirus outbreak in China and in other parts of the globe. The Dow, S&P and NASDAQ began the trading day just below all-time highs. The markets are gearing up for next week’s packed economic calendar that features GDP, Core PCE, Consumer Confidence and Sentiment along with housing data. Also, the two-day Fed meeting will kick off on Tuesday and ends Wednesday with the monetary policy statement being released at 2:00 p.m. ET. There is a zero percent chance of a change to the Fed Funds Rate at the meeting.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Wednesday – January 22, 2020

The National Association of REALTORS® (NAR) reports that Existing Home Sales rose 3.6% in December from November to an annual rate of 5.54 million units versus the 5.42M expected. It was the highest level since February 2018. Sales were up nearly 11% from December 2018. Gains were seen in the Northeast, South and West with a decline in the Midwest. Existing Home Sales include single-family homes, townhouses, condominiums and co-ops.

The median existing home sales price rose to $274,500 up 7.8% from December 2018. Inventories continue to run low at a three-month supply, well below the normal rate of six months. Lawrence Yun, NAR’s chief economist said, “We saw the year come to a close with the economy churning out 2.3 million jobs, mortgage rates below 4% and housing starts ramp up to 1.6 million on an annual basis,” he said. “If these factors are sustained in 2020, we will see a notable pickup in home sales in 2020.”

Fannie Mae released its January 2020 Economic and Housing Outlook revealing that consumers will lead economic expansion with a boost from housing construction. The GSE reports that strong consumer demand and low mortgage rates – as well as moderate improvements to supply – have housing well-positioned for a come-back year in 2020. Fannie Mae went on to forecast that in 2020, consumer spending, business fixed investment, and housing are all expected to contribute meaningfully to another year of positive growth in what continues to be the longest economic expansion in U.S. history. Economic growth (Gross Domestic Product) in 2020 stands at 2.1%.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Tuesday – January 21, 2020

RE/MAX reports that the housing sector ended the year on a strong note in December. December finished with a 13.5% year-over-year gain in home sales in the 54 metros it covers – the highest increase of any month in 2019 and also the highest month of December since 2009. However, shrinking inventories remain a concern. The report said that housing inventories fell to 3.3 months of available supply compared to 4.8 months in December 2018.

Bank repossessions of homes continue to decline across the U.S. as the strong labor market and continued expanding economy attributable to the decreasing numbers. In 2019, there were 143,955 properties repossessed, down 37% from 2018and down 86% from the peak of 1,050,500 in 2010 and to the lowest level as far back as data is available in 2006. Foreclosure filings amounted to 493,066 on U.S. properties last year, down 83% from the 2.9 million peak in 2010.

The U.S. financial markets reopened on Tuesday after the Martin Luther King Jr. holiday on Monday. U.S. stocks are modestly lower on reports of a corona virus outbreak in China, which can be transmitted between people, at a time of mass traveling in the country for the Lunar New Year. The S&P is slightly lower as it hovers near all-time highs. Treasury prices are higher while the 10-year T Note yield has declined to 1.77%. Mortgage rates remain just above historic lows.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp