It’s amazing how home values here in California keep rising, just last week we closed a loan for a client that was unable to refinance their home just a year ago because they did not have enough equity at the time.
This saved our client a ton of money each month and now have a plan to pay their home off sooner. If I can help you, your friends or good neighbors please call and we can see how we can help you take advantage of these currently low rates. Now on to this week2019s report!
Just when you thought it was safe to play the markets, BOOM…the market erases all the gains for 2014 in one day of trading. After weeks of slow but steady increases in the DOW, NASDAQ, and the S&P 500, Thursday took it virtually all back with the DOW plunging 317 points.
The drugging of the markets had only a little bit to do with domestic issues. The market drudging was most impacted by international concerns.
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The U.S, portion of the market decline was led by Exxon Mobil Corp. and Micron Technology Inc Both companies reported significantly weaker corporate profits for the 2nd quarter of 2014. Additionally the outlook for the next quarter was not any better fueling fears that the global slowdown that some economists have been fearing may be taking shape.
One quarter of less than stellar results does not mean that we are heading in the wrong direction. However investors always try to stay ahead of the movement of the markets and many of them are just playing it safe by selling off some of their holdings in companies that they think may in line for lower profits in the coming months.
The big driver in the market decline was on the international front related to Portugal and Argentina. Argentina defaulted on a debt payment and a large Portuguese bank indicated they are having financial issues. This was enough to stimulate fears in the world monetary system bringing us back to last year when countries and banks needed to be bailed out. This sent investors around the world scurrying to sell stocks and buy bonds.
The DOW as of Friday’s opening bell was down 40 points on account of the latest labor department report. The employment report came in lower than expected with 206,000 jobs added. The analysts were anticipating the addition of approximately 230,000. The unemployment rate rose tby.1% to 6.2%
On the housing front, the market seems to be divided. Sales of new homes have been weak whereas sales of existing homes are still considered respectable. The pending homes sales index came in a healthy 102.7. This is down from 103.8 in the prior month however the number is still considered reasonably strong. Home price appreciation seems to be slowing down more than most experts predicted.
The Case-Shiller Home Price Index shows that in May home prices declined .3 percent. This is the first negative reading since January of 2012. The positive news in the report is that home prices are still 9.3 percent higher than the same time last year.
Do you have a news tip? Call us at (661) 298-1220, or drop us a line at email@example.com.
After a very busy week of economic data, next week seems to be a little more relaxed with only a few market moving reports due out:
- Tuesday August 5th – Factory Orders
- Wednesday August 6th – MBA Applications
- Thursday August 7th – 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.
Source: Santa Clarita News