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QUOTE OF THE WEEK... "Instant gratification takes too long." --Carrie
Fisher, American actress and writer
INFO THAT HITS US WHERE WE LIVE ... It didn't take long to find out that the Fed's decision to increase the Funds Rate by 0.25% at their mid-December meeting didn't have much negative impact on either mortgage rates or the housing market. Freddie Mac's mortgage rate report at the end of the month said the the Fed Funds rate hike is having a limited impact on mortgage interest rates thus far. Mortgage rates went up a little on a good Consumer Confidence number one week, then down last week thanks to investor worries over oil prices and global economic growth. Normal stuff. In December, Fannie Mae's Home Purchase Sentiment Index actually went up 2.4 points, to 83.2.
Some negative types felt the Fed rate hike was a "disaster" for the housing market, pointing to a steep 28% drop in weekly overall mortgage applications. But a prominent economic research consultancy noted that, taking refinance applications out of the mix, purchase mortgage applications were up 10.5%, month over month, for December, hitting their highest level since early 2010. Their property economist believes, "housing demand will be able to withstand a rise in interest rates, thanks to an improving labor market and easing credit conditions." Even with the rate hike, December's existing home sales should rebound to 4.80 to 5.11 million annual sales, according to some analysts.
BUSINESS TIP OF THE WEEK... Never fear a follow-up. If it's been a long time since you've gotten back to a prospect, give it a shot anyway. "Faint heart ne'er won fair lady."
INFO THAT HITS US WHERE WE LIVE ... It didn't take long to find out that the Fed's decision to increase the Funds Rate by 0.25% at their mid-December meeting didn't have much negative impact on either mortgage rates or the housing market. Freddie Mac's mortgage rate report at the end of the month said the the Fed Funds rate hike is having a limited impact on mortgage interest rates thus far. Mortgage rates went up a little on a good Consumer Confidence number one week, then down last week thanks to investor worries over oil prices and global economic growth. Normal stuff. In December, Fannie Mae's Home Purchase Sentiment Index actually went up 2.4 points, to 83.2.
Some negative types felt the Fed rate hike was a "disaster" for the housing market, pointing to a steep 28% drop in weekly overall mortgage applications. But a prominent economic research consultancy noted that, taking refinance applications out of the mix, purchase mortgage applications were up 10.5%, month over month, for December, hitting their highest level since early 2010. Their property economist believes, "housing demand will be able to withstand a rise in interest rates, thanks to an improving labor market and easing credit conditions." Even with the rate hike, December's existing home sales should rebound to 4.80 to 5.11 million annual sales, according to some analysts.
BUSINESS TIP OF THE WEEK... Never fear a follow-up. If it's been a long time since you've gotten back to a prospect, give it a shot anyway. "Faint heart ne'er won fair lady."
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