Goody's Blog
 
June 15th, 2017 By Goody
Fed raises rates as expected—what to expect?

Federal Reserve Chair Janet Yellen and her colleagues voted to raise the key overnight lending rate another quarter percentage on Wednesday, moving the target rate range from .75% – 1.00% to 1.00% – 1.25%. Most analysts had been predicting the hike since the previous increase in mid-March, so equities and bond markets had priced in the news well before it hit.

Last week, mortgage rates were at their lowest levels of the year, perhaps in part due to employment data and mounting distractions in Washington. By Thursday morning, it was evident that the Fed’s decision wasn’t having a drastic impact on the downward trend. Though mortgage rates were slightly higher than last week according to Freddie Mac, the 30-year fixed rate average of 3.91% is nearly 40 basis points off its mid-March peak. Over the same time period, the 15-year fixed rate tumbled from 3.50% to 3.18%, and 5/1 ARM rates dropped from 3.28% to 3.15%.*

Looking forward, the Fed has not backed off its forecast to raise rates once more in 2017, though inflation projections will primarily guide them in the eventual decision. Another factor playing into a future increase is the Fed’s hefty $4.5 trillion balance sheet that’s over-stuffed with mortgage-backed securities. The plan is to divest a significant portion of this cache sometime in 2017, and Yellen and friends have to know that markets can’t handle another 25 basis-point rate hike in the midst of a huge sell-off. Good news for the bond market is coming out of China, which recently announced that it would be buying long-term U.S. notes once again after selling a record $200 billion in bonds last year.

Despite the current political environment in Washington, the stock market continues to soar and investors remain undeterred. The prospect of a comprehensive tax reform that was priced into the market after the election is likely at least a year away, but stocks haven’t corrected in response to the uncertainty defining the current administration’s agenda.

Despite the recent rate hike, homebuyers and those looking to refinance would be wise to take advantage of mortgage rates that are still hovering at or near yearly lows.

*FreddieMac.com, “Compilation of Weekly Survey Data”

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June 14th, 2017 By Goody
Building Permits Up Again in May
Mesquite continues its torrid pace with Home Builders taking out 25 permits for single family residences last month. That’s nine more permits than May 2016!   The market is still red hot along with our temperatures.  
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May 31st, 2017 By Goody
Mortgage Forecast
Here is a quick update on how things are looking in the market place. The Mortgage Bankers Association reports that mortgage rates were unchanged in the latest week and remain just above all-time lows.  In housing news, Pending Home Sales in April declined from March and are lower than last year this time, mainly due to a limited inventory of homes for sale.  With rates at favorable levels and Mortgage Bond prices at six-month highs, locking is recommended
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May 12th, 2017 By Goody
Building is Booming in Mesquite Nevada
25 permits for single family residences at $5.538 million were issued in April 2017. Pulte Homes (Sun City) 12 and Construction West (Royal Vista) 5, took out the most permits this month. Since January Pulte Sun City has taken out 45 permits! The highest valued was $365,352 and the lowest valued was $143,364. April 2016 saw 19 permits issued at $4.439 million.
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May 1st, 2017 By Goody
Weekly Mortgage Forecast
Mortgage rates continue to hover near the low 4% range and remain historically attractive.  In economic news, inflation remained tame, while a key manufacturing index was weaker than expected.  I am recommending carefully floating, but be aware that we have the Fed meeting and the Jobs Report for April later this week. 
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April 24th, 2017 By Goody
This Weeks Mortgage Forecast
The French elections have ignited a rally in global Stock markets, which is putting pressures on Bond prices as well as home loan rates. Last week, mortgage rates hit their lowest levels seen since early November and remain just above historic lows. I will continue to recommend locking to capture the best rates in five months.  Updated Tuesday April 25th....U.S. Stock markets continue to rally today fueled by solid housing data, strong corporate earnings and possible tax reform announcements this week. March New Home Sales rose to their highest level in nearly a year due in part to limited inventories and strong demand. With mortgage bond prices edging lower, mortgage rates could push a bit higher in the coming days. Locking is recommended
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April 19th, 2017 By Goody
This Weeks Mortgage Forecast
I have great news to share with you.  If you have not already heard rates are doing very well right now.  The Mortgage Bankers Association reported this morning that mortgage rates continued to edge lower in the latest week and are now at the lowest point since mid-November 2016.  There are no economic reports due for release today.  With mortgage rates at five-month lows, I am recommending locking as sentiment can quickly reverse.
 
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April 17th, 2017 By Goody excerpt from MLN
New home construction healthy in Mesquite, Nevada
The market for new home construction in Mesquite appears to remain quite healthy based on the number of new single family residence permits issued by the city in March when builders took out 28 permits.   The city of Mesquite Building Department’s monthly permit report for February shows a jump in permits for single family residences that’s three times the number issued last year. The city handed out 29 permits last month compared to 10 issued in February 2016.
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April 10th, 2017 By Goody
This Weeks Mortgage Forecast
Rates have been creeping a little higher, and we had a little break as the jobs report came in lower than expected. This week's update is as follows: Mortgage rates continue to hover just above the 4% level after last week's March Jobs Report. There are no economic reports due for release today and the week's calendar features inflation data from the wholesale and consumer sectors. I will continue to recommend locking. 
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April 9th, 2017 By Goody
Mesquite Nevada Listings Wanted
The market is red hot and I need listings to sell.  If you are thinking about selling your home, now is a great time with low inventory and many buyers deciding to move to Mesquite.  The on market time is less and the prices are higher.  Call Goody for an in depth market anaylsis on what your home will most likely sell for.
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