January 2018 Letter from my Heart

Good Morning to the bright prospects of a New Year – 2018,

As we enter the New Year, may you be blessed with having enjoyed a restful and lovely Holiday Season.  It is a joy to see our markets’ stability and resilience, filled with possibilities.  Life is amazing.

Top four thoughts on what might add some spice to our markets in 2018:

  1. Jobs – growth, wage rates, type, and location
  2. Economic prospects by way of D.C. Tax and Regulation Policies
  3. Federal Reserve policy on rate adjustments to economics and inflation
  4. Changing leadership at the Federal Reserve and many of our court benches

Helpful Stats

Here are few leading us into our Good, Bad, N Ugly:

  • 1st Time-Home-Buyers up to 56 % of market for purchases
  • Average credit score nationwide is 700.  For mortgage borrowers, it is 745
  • Major year-end changes – 2017: 1) “US Bank” to stop wholesale lending, and 2) “Capital One” to completely leave the mortgage lending space.
  • 6 Million unfilled job positions.  In response, companies are doing more on-site training, plus adding additional apprenticeship programs.
  • Researchers are finding declines in the today’s unemployment rate are having a far less – 30% less – influence on inflation than a decades ago.

The Good:

Two noteworthy items:

1) Wage growth remains at just 2.5% over last year, yet when you add an increase in the average work week – since August – total boost to wages is a respectable rate of 4.75%.

2) Manufacturing jobs in 2017 are expected to see a 12 fold increase over those added in 2016.

The Bad:

First time in a many months, the 30 – 59 days delinquency rate made a noticeable jump, moving up from 2 % to 2.4 %.  We will keep you informed.

The Ugly:

With a spirit of Christmas and the Holidays, I choose to restrain from my usual exuberance with the Ugly.  Instead, may I offer a wish for peace on Earth and good will towards all.  Cancer deaths have dropped 25 % since 1991 and, we now have 9 Billion more cubic feet of trees in the US than we did in 1953!

In Closing:

My business is in helping finance the real estate market.  It is what I love to do, while recognizing how dependent I am not only your calls, but also the vitality of our local economy, and confidence of our consumers and business.  We truly are in this all together. Thank you for allowing me to be a part of your life.  And my promise to you is to continue scoping the market, checking for fluctuations, and evaluate possibilities and options, best for you.  You deserve the best and I want to best serve you.

Please, keep calling and sending your emails, with a special thanks for trusting us with your referrals.  We look forward to each call and every referral.

Thank you for a wonderful and successful 2017, as we remain gratefully yours.

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