When it comes to talking about millennials, there are many stereotypes out there that have influenced the way the public feels about the generation. Whether it’s the assumption that millennials are irresponsible with money and would rather buy avocado toast than save for a down payment, or that millennials jump from job to job, the majority of these stereotypes paint the generation in a negative light.
A new study by Bank of America entitled Better Money Habits Millennial Report recently came to the defense of the generation when it reported that:
“Millennials deserve more credit – both from themselves and from others – for their mindfulness when it comes to money...
By James Brooks
This week?s FOMC meeting has adjourned with no change to key short-term interest rates, as was expected. The post-meeting statement didn?t reveal any major surprises, but the language used differed a little from the previous adjournment when addressing expected inflation benchmarks. The change indicates that the Fed feels the 2.0% annual rate of inflation is more likely to be reached than it was last meeting.
There was nothing in this statement that should bring too much concern nor get too excited about. The stock markets are down slightly from their pre-adjournment levels but they had lost ground from morning levels long before 2:00 PM ET. The Dow is currently up 116 points while the Nasdaq is currently up 20 points. The bond market is now down 9/32 (2.75%), which should be enough of a move for some lenders mortgage rates by .125 of a discount point.
January?s ADP Employment report was released at 8:15 AM ET this morning, revealing an increase of 234,000...
Urban Institute recently released a report entitled, “Barriers to Accessing Homeownership,” which revealed that “eighty percent of consumers either are unaware of how much lenders require for a down payment or believe all lenders require a down payment above 5 percent.”
Myth #1: “I Need a 20% Down Payment”
Buyers often overestimate the down payment funds needed to qualify for a home loan. According to the same report:
“Consumers are often unaware of the option to take out low-down-payment mortgages. Only 19% of consumers believe lenders would make loans with a down payment of 5% or less… While 15% believe lenders require a 20%...
By James Brooks
The bond market is down 2/32 (2.70%),However, gains late yesterday should allow this morning?s mortgage pricing to be a little better than yesterday?s early rates.
January's Consumer Confidence Index (CCI) was be posted late this morning. The Conference Board announced a reading of 125.4 that exceeded forecasts of 124.0. That means surveyed consumers felt better about their own financial situations than expected. They were also more optimistic than they were last month as this was an increase from December?s revised 123.1 reading. Because strengthening confidence usually translates into higher levels of consumer spending that fuels economic growth, this is negative news for bonds and mortgage rates.
Tomorrow has two early reports, followed by the first FOMC meeting adjournment of the year. The first economic report of the day will be the ADP Employment report at 8:15 AM ET. This release has the potential to cause some movement in the markets if it shows much stronger...
Every winter, families across the country decide if this will be the year that they sell their current houses and move into their dream homes.
Mortgage rates hovered around 4% for all of 2017 which forced many buyers off the fence and into the market, resulting in incredibly strong demand RIGHT NOW!
At the same time, however, inventory levels of homes for sale have dropped dramatically as compared to this time last year.
Trulia reported that “in Q4 2017, U.S. home inventory decreased by 10.5%. That is the biggest drop we’ve seen since Q2 2013.”
Here is a chart showing the decrease in inventory levels by category:
By James Brooks
The bond market is down 11/32 (2.70%), which should push Raleigh Area mortgage rates higher by approximately .250 of a discount point.
We did have a relevant economic report post this morning when the Commerce Department gave us December's Personal Income and Outlays data at 8:30 AM ET. It showed a 0.4% increase in income and a 0.4% rise in spending. The income reading matched forecasts, but analysts were expecting to see a 0.5% increase in spending. The readings indicate consumers had more money to spend last month than they did in November and they did spend more. However, they didn?t spend quite as much as predicted. That allows us to consider the data neutral for bonds and mortgage rates.
The rest of the week is extremely busy with eight more economic reports for the markets to digest, including two highly important releases later in the week. In addition to the data, there is also an FOMC meeting that definitely has the potential to disrupt the markets. We have something...
By James Brooks
The bond market is down 7/32 (2.64%), which should push Raleigh Area mortgage rates higher by approximately .125 of a discount point.
Yesterday?s 7-year Treasury Note auction went very well with several benchmarks indicating a strong level of interest in the securities. Bonds made a nice move for the better right after results were posted, so we can attribute the auction results to at least part of yesterday?s rally.
There were two important economic releases posted early this morning. The initial reading to the 4th quarter Gross Domestic Product (GDP) reading showed that the economy grew at an annual rate of 2.6%. That was softer than the 3rd quarter?s 3.2% and fell short of the 2.9% that was expected. Because bonds tend to thrive in weaker economic conditions, the slower rate of growth is good news for the bond and mortgage markets.
Also posted at 8:30 AM was December's Durable Goods Orders that showed a 2.9% increase in new orders for big-ticket products such as appliances...
By James Brooks
The bond market is down 12/32 (2.61%), which should push Raleigh Area mortgage rates higher by approximately .125 of a discount point.
Yesterday?s 5-year Treasury Note auction went fairly well with several benchmarks indicating an above average demand for the securities. Bonds did improve a little after results were posted, but not enough for some lenders to revise rates intraday. However, that does allow us to remain optimistic about today?s 7-year Note sale. If it is met with a strong demand from investors, the broader bond market may improve again later today. Results will be posted at 1:00 PM ET, so any reaction will come during early afternoon trading.
The first of today?s two minor economic releases was last week's unemployment figures at 8:30 AM ET. They showed that 233,000 new claims for unemployment benefits were filed last week, up from the previous week?s revised 216,000 initial filings. Rising claims is a sign of a softening employment sector, so the increase is technically...
Definitely an aggressive headline. However, as the final data on the 2017 housing market rolls in, we can definitely say one thing: If you are considering selling, IT IS TIME TO LIST YOUR HOME!
How did we finish 2017?
- New-home sales were at their highest level in a decade.
- Sales of previously owned homes were at their highest level in more than a decade.
- Starts of single-family homes were their strongest in a decade and applications to build such properties advanced to the fastest pace since August 2007.
And Bloomberg Business just reported:
“America’s housing market is gearing up for a robust year ahead. Builders are more optimistic, demand is strong and lean inventory is keeping prices...