Good morning to the newness of Spring!
We continue our journey into the New Year, with most economic data speaking to “what was”, called trailing indicators. Yet looking ahead, our focus will be on, 1)“if or when” lenders loosen lending strings, and 2) if commercial underwriting will become more friendly to small business. It is about time and the promise of Washington DC. Now let’s see if this will communicates to us on the local level.
Statistics and news we can use and is worthy of watching:
- New Home Sales: Down in December yet still up 12% year over year
- Private sector: wage growth running 3% due to a shortage of job applicants
- PCE: Personal Consumption Expenditures tracks inflation, 1.7% year over year
- GDP: 4th Qtr. Up 1.9% with signs 1st Qtr. is not doing the historical slump
- Affordability factors: Continuing flat – no better, no worse. The slight bump in rates sending the message, lower rate days are over.
- Loan down payment: God news: Decrease in down payment requirements.
For the real estate market – in the short term – home choices and options, will likely remain slim pickings. However, competition should continue to underpin the market. Within this, the one potential negative is the strength of the stock market. It may delay potential buyers, yet I doubt it will stop them from looking.
Our affordability factors continue flat, no better, and no worse. Good news: More qualify with dramatic decrease in down payment requirements. As for rates, the slight bump in rates may signal an end to lower rates. Time to stop hoping.
A most interesting observation, one worthy of calling Michael Ryan & Associates: The expansion of specific “lending niches” helping more people to qualify. This includes being able to use RSU’s from our top tech companies towards income, another being the ability to pay off debt to qualify, and interest-only loans peeking back into our market.
Call us to learn more about these tools and how to use them with confidence.
After we obtain more definitive numbers – along with more policy details from Washington – I look forward to returning to our more typical format: The Good, the Bad, and the Ugly. Best guess will be next month. Stay tuned!
Call today, to learn about our new auto-scheduler. We are anticipating an active and exciting market, we are implementing innovative systems and more staffing to serve your needs in a timely fashion. “Staying ahead” is how we best serve you.
Have a fabulous day and talk with you soon!