Weekly Market Update by Jen Hernandez, 7/21st-25th

Weekly Market Update, 7/21st-25th:

Summer is in full swing, and we are still seeing homes with multiple contracts . So its important more than ever before to let us pre-approve your clients AHEAD of needing to make an offer! (a week would be very nice!) Once we get their documents uploaded, and consult /interview the client, we can have a letter within 1 hour.

In the Markets

The slight increase in rates this week was due to stronger than expected economic data. Existing Home Sales are IMPROVING, which constitutes about 90% of the national market. This is the 3rd month the Existing Home Sales have increased.  On the other hand, New Home Sales DECLINED 8%. Overall, the bulk of the housing market is showing improvement, and the news to the stock market was positive.

Next week's Fed meeting on Wednesday and the monthly employment report on Friday will prove to be key indicators on the state of the economic growth. Investors are skittish that there may be rising inflation, and concerned the Fed may tighten monetary policy. The Treasury will also be auctioning bonds on Monday, Tuesday and Wednesday.  Due to the very busy week, we will be encouraging clients to LOCK (instead of float ) their rates.

Until next time!

~Jen

Market Update by Jen Hernandez 7/21

Be sure you're checking our Facebook and Twitter pages for weeks' videos about a time saving tip, and a deal we saved by closing in under 30 days!

In the Markets:

Rates calmed down last week after the turmoil abroad from the horrific tragedy of the plane being shot down over the Ukraine. Investors quickly turned to safer assets (ie bonds), and that lowered the yields a bit.

When a conflict breaks out which could affect global markets, investors generally respond with a "flight to safety". Uncertainty created by the threat of escalation causes investors to reduce the level of risk in their portfolios. This typically involves shifting from stocks to relatively safer assets such as gold and bonds, including mortgage-backed securities (MBS).  

Until next time!

~Jen