Here’s a quick update on what our Mortgage Broker friends have to say about the current real estate financial situation:
STOCKS SPIKE AS TRADE TENSIONS EASE:
Beijing and Washington seemed to adopt less strident tones in their negotiating gamesmanship. This, plus solid economic data sent stocks soaring, to end August on a high note.
Accounting for 70% of our economic growth, consumer spending shot up 4.7% in Q2, its biggest gain in four years. And economy-wide corporate profits gained 5.3% in Q2 after pundits predicted declines. Fold in the stimulus of Fed rate cuts and you can see why some analysts see an extension of the economic expansion. Yes, others are calling for a recession, but in reality no one’s showing up. The week ended with the Dow UP 3.0%, to 26,403; the S&P 500 UP 2.8%, to 2,926; and the Nasdaq UP 2.7%, to 7,963.
Although stocks rose, the volatility drove investors to the safe haven of bonds. The 30YR FNMA 4.0% bond ended UP .16, to $103.80. In Freddie Mac’s Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate rose slightly but is almost a full percent lower than last year.
Despite all the reports of a “looming” recession, a realtor.com survey reports 98% of economists, strategists, academics, and policymakers do not believe one will start this year, and more than 60% do not see one in 2020 either.