| Brought to you by Darel Ansley
|
|
FOR THE WEEK OF SEPTEMBER 10, 2018 
YOUR WEEKLY SMILE |
||
| Never trust atoms, they make up everything. |
MARKET UPDATE |
||
|
Construction spending in July landed a healthy 5.8% above where it was a year ago. In line with this, the National Association of Home Builders (NAHB) pegged builder confidence at a still high 67. The NAHB Chairman explained, "builders continue to report strong demand for new housing, fueled by steady job and income growth along with rising household formations." In Freddie Mac's August Forecast, their chief economist noted, "the good news is that purchase mortgage applications have recently rebounded to above year-ago levels." |
REVIEW OF LAST WEEK |
||
|
RALLY ENDS... Wall Street staged an end-of-summer sale, as prices dropped on all three indexes. Some blamed it on trade worries, but the economic data stayed strong, so it could have just been The red-hot ISM Manufacturing index hit its highest level since 2004 , while ISM Services also came in well above expectations. Initial jobless claims fell to 203,000, the fewest since 1969! August's Employment Report showed 201,000 more jobs. Wages are up 2.9% the past year, their biggest gain yet in the economic recovery. With total hours worked up 2.1%, total cash earnings are up 5.1% from a year ago. The week ended with the Dow down 0.2%, to 25917; the S&P 500 down 1.0%, to 2872, and the Nasdaq down 2.6%, to 7903. Friday's strong jobs report sent bonds south for the week. The 30YR FNMA 4.0% bond ended down .36, at $101.45. Yet t he national average 30-year fixed mortgage rate increased marginally in Freddie Mac's latest Primary Mortgage Market Survey . Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information. DID YOU KNOW?... Realtor.com reports 80% of homebuyers surveyed were pet owners and 79% said they would pass on a dream home that didn't work for their pets. |
THIS WEEK'S FORECAST |
||
|
INFLATION COOL, RETAIL WARM... Inflation by the Consumer Price Index (CPI)isn't expected to heat up, remaining pretty much within the Fed's target range. Retail Sales, on the other hand, should stay warm, NOTE: Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates. |
FEDERAL RESERVE WATCH |
||||||||||||||||||
|
Forecasting Federal Reserve policy changes in coming months... It's hard to find anyone who thinks the Fed won't raise the rate in two weeks, but we shouldn't see another hike until the end of the year. Note: In the lower chart, a 98% probability of change is only a 2% probability the rate will stay the same. Current Fed Funds Rate: 1.75%-2.00%
|
BUSINESS TIP OF THE WEEK |
||
| Come to work 15 minutes early. Use the time to get all the small stuff ready--computer, phone messages, coffee, to-do list--so you can jump right into your most important task when the day normally begins. |
 |
Darel Ansley
Senior Real Estate Loan Officer NMLS# 500247 901 North Mission Street Wenatchee, WA 98801Office: (509) 664-5324 Mobile: (509) 860-3301 Fax: (509) 664-5315 darel.ansley@peoplesbank-wa.com www.peoplesbank-wa.com/darel |
 |
|
This e-mail is an advertisement for Darel Ansley. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice, or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in this message is the property of Peoples Bank and cannot be reproduced for any use without prior written consent. This message is intended for business professionals only and is not intended for distribution to consumers or other third parties. The material does not represent the opinion of Peoples Bank. |
