Helped another client buy a condo in Green Valley, AZ
If you are buying or selling your home!
Give me a call (520) 870-5114
www.rodgergarner.com
Welcome... With a professional background as a business owner for over 25 years and a strong entrepreneur’s spirit, it is no surprise that Rodger P. Garner is a million-dollar producer. With over a decade of real estate experience, he is proficient with negotiating, navigating contracts and guiding his clients through the process of buying & selling with the utmost professionalism. Your Real Estate Consultant for Life! Oh by the way....I'm never too busy for any of your referrals!
Wednesday, February 21, 2018
Weekly Review
The
major stock market indexes were overdue for a pause, and pause they did, by
registering their largest weekly declines since 2016. The Dow Jones
Industrial Average fell 4.1%, the NASDAQ dropped 3.5% and the S&P 500
lost 3.9%. Bonds did not fare much better with a sharp drop in prices sending
the yield on the 10-year Treasury note to its highest level in almost four
years.
Good
economic news, including a rise in Pending Home Sales and a strong Employment
Situation (Jobs) report for January, led to an increase in investor
expectations for rising inflation. Although the Federal Reserve's Federal
Open Market Committee (FOMC) unanimously voted on Wednesday to leave the fed
funds target range unchanged at 1.25%-1.50%, they changed their statement on
inflation.
The FOMC admitted inflation
expectations recently increased, and said it expected the rate of price
changes "to move up this year" and stabilize around its 2%
objective "over the medium term." Additionally, the 10-year
inflation breakeven rate has risen to its highest level in over three years.
According to the FOMC policy statement, the economy continues to strengthen
and inflation is expected to move higher while the FOMC continues to
anticipate further gradual increases in short-term rates.
The Fed Funds futures market
continues to predict (with an implied probability of 77.5%) the most likely
time for the next 25 basis point rate-hike announcement will take place at
the next FOMC meeting on March 21, and suggests there will be an additional
two hikes before the end of the year.
In housing news, Pending Home
Sales increased 0.5% during December according to the National Association of
Realtors (NAR). This was the highest reading since last March.
Pending Home Sales were also 0.5% higher on a year-over-year basis. The
NAR stated the December data suggests the housing market will start 2018 with
"a small trace of momentum" but expect the recent tax-law changes
to weigh on home sales in 2018.
The number of mortgage
applications showed a decrease according to the latest data from the Mortgage
Bankers Association's (MBA) weekly mortgage applications survey. The
MBA reported their overall seasonally adjusted Market Composite Index
(application volume) decreased by 2.6% during the week ended January 26,
2018. The seasonally adjusted Purchase Index decreased 3.0% from a week
prior while the Refinance Index fell 3.0%.
Overall, the refinance portion
of mortgage activity decreased to 47.8% of total applications from 49.4% in
the prior week. The adjustable-rate mortgage share of activity
increased to 5.7% of total applications from 5.2%. According to the
MBA, the average contract interest rate for 30-year fixed-rate mortgages with
a conforming loan balance increased to 4.41% from 4.36%, with points increasing
to 0.56 from 0.54.
For the week, the FNMA 3.5%
coupon bond lost 104.7 basis points to close at $100.234 while the 10-year
Treasury yield increased 18.12 basis points to end at 2.8411%. The
major stock indexes plunged during the week to record their largest weekly
declines since 2016.
The Dow Jones Industrial
Average fell 1,095.75 points to close at 25,520.96. The NASDAQ
Composite Index dropped 264.82 points to close at 7,240.95 and the S&P
500 Index lost 110.74 points to close at 2,762.13. Year to date on a
total return basis, the Dow Jones Industrial Average has gained 3.24%, the
NASDAQ Composite Index has advanced 4.89%, and the S&P 500 Index has
added 3.31%.
This past week, the national
average 30-year mortgage rate rose to 4.45% from 4.28%; the 15-year mortgage
rate increased to 3.79% from 3.65%; the 5/1 ARM mortgage rate increased to
3.42% from 3.34% and the FHA 30-year rate climbed to 4.25% from 4.05%.
Jumbo 30-year rates increased to 4.50% from 4.41%.
Please
give us a call if you have any financial questions or if you need a second
opinion on a loan scenario. If you are calling after hours or on weekends,
please use any of the direct contact numbers for me and our Loan Officer
Assistants listed below or go to www.IanBrannonGroup.com for
more information.
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Tuesday, February 13, 2018
2018 Tucson Golf Tournament
February 28 - March 4, 2018
Omni Tucson National Resort, Tucson Arizona
The Cologuard Classic features an 78-player field competing for a $1.7 million purse with $255,000 and 255 Charles Schwab Cup points for the winner. The no-cut format includes three days of competition (Friday-Sunday) with players participating in pro-am events on Wednesday and Thursday. Tournament proceeds benefit youth athletic programs in Southern Arizona.
Friday, February 9, 2018
Thursday, February 8, 2018
The Rodeo is coming to town!
When: February 17 - 25, 2018
Information http://www.tucsonrodeo.com/about.html
Schedule: http://www.tucsonrodeo.com/scheduledirections.html
Fed Structure
The Federal Open Market
Committee (FOMC) consists of twelve members--the seven members of the Board of
Governors of the Federal Reserve System who are appointed by the President to
staggered 14 year terms; the president of the Federal Reserve Bank of New York;
and four of the remaining eleven Reserve Bank presidents, who serve one-year
terms on a rotating basis. The rotating seats are filled from the following
four groups of Banks, one Bank president from each group: Boston, Philadelphia,
and Richmond; Cleveland and Chicago; Atlanta, St. Louis, and Dallas; and
Minneapolis, Kansas City, and San Francisco. Nonvoting Reserve Bank presidents
attend the meetings of the Committee, participate in the discussions, and
contribute to the Committee's assessment of the economy and policy options.
The FOMC holds eight regularly scheduled meetings per year. At these meetings, the Committee reviews economic and financial conditions, determines the appropriate stance of monetary policy, and assesses the risks to its long-run goals of price stability and sustainable economic growth. The Fed members are not required to serve all 14 years and some retire or resign early as we have seen lately. Jerome Powell is scheduled to take over as chair for Janet Yellen Monday when her term as chair expires. Her term as a governor doesn't expire until 2024 and she could stay but indicated she will retire.
The makeup of the Fed is important because it is the most powerful financial institution in the world and is a huge factor in mortgage interest rates. New additions are expected this year but nominations go through the Senate and there is often significant debate.
The FOMC holds eight regularly scheduled meetings per year. At these meetings, the Committee reviews economic and financial conditions, determines the appropriate stance of monetary policy, and assesses the risks to its long-run goals of price stability and sustainable economic growth. The Fed members are not required to serve all 14 years and some retire or resign early as we have seen lately. Jerome Powell is scheduled to take over as chair for Janet Yellen Monday when her term as chair expires. Her term as a governor doesn't expire until 2024 and she could stay but indicated she will retire.
The makeup of the Fed is important because it is the most powerful financial institution in the world and is a huge factor in mortgage interest rates. New additions are expected this year but nominations go through the Senate and there is often significant debate.
Please give us a call if you
have any financial questions or if you need a second opinion on a loan
scenario. If you are calling after hours or on weekends, please use any of the
direct contact numbers for me and our Loan Officer Assistants listed below or
go to www.IanBrannonGroup.com for
more information.
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