Weekly Housing and Market Updates Are Back!

Sorry, I’ve missed you, but we’re back!

It’s been said that “opportunity comes knocking.” And that’s certainly the case for people looking to purchase or refinance a home, as home loan rates remain near 18-month lows.In recent weeks, investors have moved into the safe haven of the Bond markets for several reasons, including weak economic data here at home, concerns about Ebola, and economic and geopolitical uncertainty overseas. This has helped Mortgage Bonds reach 18-month highs, and since home loan rates are tied to Mortgage Bonds, rates have reached 18-month lows.

In addition, Stocks have been volatile due to the upcoming end of the Fed’s Bond-buying program. The Fed has been slowly tapering its purchases throughout the year, and every indication is that the Fed will completely end the program at its meeting on October 28 to 29. The key takeaway is that Stocks performed terribly after the first and second rounds of the Fed’s Bond-buying program ended. If Stocks worsen, Mortgage Bonds and home loan rates could continue to improve.

In other news, key housing reports showed mixed results for the sector. September Existing Home Sales reached its highest pace of the year, showing gains in all major regions except for the Midwest. September New Home Sales also reached a six-year high. However, New Home Sales for August, which were originally reported at 504,000, were revised to 466,000. Sales in June and July were also revised lower.

The bottom line is that home loan rates remain near some of their best levels of the year, and now is a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients.

Forecast for the Week  
A packed economic calendar is in store this week. Plus, the Fed meeting could cause volatility in the markets.

  • Housing news kicks off the week with Pending Home Sales on Monday, followed by the S&P/Case Shiller Home Price Index on Tuesday.
  • Durable Goods Orders will also be released on Tuesday.
  • We’ll get a read on how consumers are feeling with Consumer Confidence on Tuesday and the Consumer Sentiment Index on Friday.
  • Thursday’s reports feature Weekly Initial Jobless Claims and the first reading on Q3 Gross Domestic Product.
  • Friday brings Personal Income, Personal Spending, Personal Consumption Expenditures (inflation index), the Employment Cost Index, and Chicago PMI (a regional manufacturing report).

In addition, the Fed’s next two-day meeting of the Federal Open Market Committee begins Tuesday, with the Monetary Policy Statement being released on Wednesday. Investors will be watching closely to see if the Fed fully tapers its ongoing Bond-buying program. This announcement has the potential to create volatility in the markets.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond on which home loan rates are based.

When you see these Bond prices moving higher, it means home loan rates are improving—and when they are moving lower, home loan rates are getting worse.

To go one step further—a red “candle” means that MBS worsened during the day, while a green “candle” means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Mortgage Bonds remain near 18-month highs, helping home loan rates reach 18-month lows. I’ll continue to monitor them closely.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday October 24, 2014)
Japanese Candlestick Chart
The Mortgage Market Guide View…  
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Please feel free to pass these tips along to your team, clients and colleagues.

Source: Inc.com

Economic Calendar for the Week of October 27 – October 31

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. October 27
10:00
Pending Home Sales
Sep
NA
-1.0%
Moderate
Tue. October 28
08:30
Durable Goods Orders
Sep
NA
-18.4%
Moderate
Tue. October 28
09:00
S&P/Case-Shiller Home Price Index
Aug
NA
6.7%
Moderate
Tue. October 28
10:00
Consumer Confidence
Oct
NA
86.0
Moderate
Wed. October 29
02:00
FOMC Meeting
Oct
NA
0.25%
HIGH
Thu. October 30
08:30
GDP Chain Deflator
Q3
NA
2.1%
Moderate
Thu. October 30
08:30
Gross Domestic Product (GDP)
Q3
NA
4.6%
Moderate
Thu. October 30
08:30
Jobless Claims (Initial)
10/25
NA
283K
Moderate
Fri. October 31
08:30
Personal Income
Sep
NA
0.3%
Moderate
Fri. October 31
08:30
Personal Spending
Sep
NA
0.5%
Moderate
Fri. October 31
08:30
Personal Consumption Expenditures and Core PCE
Sep
NA
0.1%
HIGH
Fri. October 31
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA
1.5%
HIGH
Fri. October 31
08:30
Employment Cost Index (ECI)
Q3
NA
0.7%
HIGH
Fri. October 31
09:45
Chicago PMI
Oct
NA
60.5
HIGH
Fri. October 31
10:00
Consumer Sentiment Index (UoM)
Oct
NA
86.4
Moderate
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 and is not intended for consumer distribution. 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.
Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Market Guide, LLC does not grant to you a license to any content, features or materials in this email.   You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

Source; Rebecca Hansen; Guild Mortgage
Contact Jeff Hansen

About Jeff Hansen, Realtor in Colorado

Search for homes here; www.jeffhansen.remax.com for FREE. Licensed Real Estate broker with RE/MAX Professionals at 10135 W. San Juan Way, Littleton, Colorado 80127. I have been a Realtor Since 1992 and provide Free Real Estate Advice Realtor in Littleton, Colorado and the Metro Denver Area, A Real Estate investment company focusing on the buyers and sellers of homes, also including fix and flips and rental properties, Listings and all sales of realty. (303)794-4530 Disclaimer I will not receive any compensation or take on any liability because of any conversation on this or any related web page w/o any written brokerage agreement. And there will be no relationship actual or implied because of any conversation on this or similar pages. No written agreement, therefore. AND Differ from state to state, so check your state's rules.
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