KHTS Radio Santa Clarita Radio – Santa Clarita News
Santa Clarita Real Estate & Market Report: March 13, 2015 – If you are having difficulty trying to get a read on what is happening in the stock market, you are not alone.
The stock market which has been considered a “Bull” market for quite some time, are we in for a possible correction. (A correction is known as a drop of 10% or more) Maybe so but if it happens I believe the market will rebound nicely as American companies are flush with cash and have been through much worse economic conditions in the recent past.
One day investors are celebrating, as they did on Thursday regarding the news that 29 or 31 banks passed their Fed stress tests.
The Dow rose 259 points. Earlier in the week, investors got scared thinking about what will happen when the Fed raises interest rates, which is likely to happen in the next few months, and the market tanked.
Santa Clarita Real Estate & Market Report
Right now it appears that with the lack of significant economic data to trade on, investors are making bigger bets on smaller pieces of news in hopes of cashing in more on their trades. This week was very light on economic data so from a reports perspective, there has been little for investors, analysts and economists to mull over.
On Wednesday the Mortgage Bankers Association of American reported that applications for purchase loans rose by a slight 2.0 percent. Refinance apps declined by 3.0 percent. Mortgage rates over the last few weeks have been creeping higher in anticipation of the Fed increasing the cost of money which is likely to occur in May or June.
The announcement after next week’s FOMC meeting on Wednesday will hopefully shed more light on the Fed’s time table for taking action.
Real estate professionals from across the country are reporting an increase in buyer and seller activity. Although some parts of the country it appears that an inventory shortage may be starting to occur again, we are seeing more homes come on the market for sale overall. Buyer demand has jumped significantly as the spring buying season is beginning.
The Northeast, which has been under a deep freeze and tons of snow, is now experiencing a thaw. Temperatures have risen above freezing, the snow and ice is melting, and residents are feeling like they can come out from hiding.
In the Northwest above average temperatures along with below average rainfall has buyer demand significantly higher for February and the first half of March according to agents and loan officers in the region.
In more good news for the labor market, first time jobless claims have dropped once again below the 300,000 benchmark down to 289,000 for the week ending March 7th. This is a welcome change from the increasing trends we have been seeing over the last 30 days.
Spring is coming and optimism for the housing market is higher than it has been in the last 7 years.
Next week’s potential market moving reports:
- Monday March 16th 2013 Industrial Production and the Housing Market Index
- Tuesday March 17th 2013 Housing Starts
- Wednesday March 18th – MBA Applications and the FOMC Meeting Announcement
- Thursday March 19th – First Time Jobless Claims
As your mortgage professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at (661) 505-4300.
