Snoqualmie Pass Real Estate, Mortgage, and the Economy – Mortgage Update

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Carnation Real Estate
Suncadia Real Estate, Easton Real Estate,

Interest Rates Cannot Move Past Stubborn Barrier:  Interest rates continue to stay in a narrow range while the stock markets have a modest sell off this week. Rates did move toward the lower part of the range but these movements are measured in a max of about .500 points. The markets continue to have all eyes on announcements from the Federal Reserve. It is an interesting set of circumstances as the stock markets moved worse at the suggestion that the Fed was not going to raise interest rates. This is not typical as the stock market is said to have benefited from lower rates. At the end of the week suggestions started coming out from Fed members that the economy continues to improve and an interest rate hike is likely toward the end of the year. Stock markets rallied a bit and rate pricing moved a little higher. The view looking forward is for continued rate movements within a limited range with not real move lower.

Industry News

"Sing with me, sing for the year, sing for the laughter, sing for the tear." Aerosmith. While year-over-year housing data sings of a strengthening market, some monthly results are true tearjerkers. Existing Home Sales, as reported by the National Association of REALTORS®, declined 4.8 percent from July to an annual rate of 5.31 million. This was below the 5.50 million expected. The disappointing drop comes after three straight monthly gains. Year-over-year sales, however, have risen for 11 consecutive months and are 6.2 percent above a year ago.

August New Home Sales surged to the highest rate since early 2008 and were up nearly 22 percent from August 2014. July's numbers also were revised higher, signaling continued strength in the U.S. housing market.

Second quarter Gross Domestic Product (GDP) data was also a reason to sing. Economic growth far outpaced growth in the first quarter, led by consumer and business spending. The final GDP reading rose 3.9 percent, above expectations and well above the anemic 0.6 percent registered in the first quarter. GDP measures the total output of goods and services produced in the U.S., and is the broadest measure of economic activity.

The Fed will continue to monitor all of these economic factors over the next month as it prepares for another discussion on whether or not to raise its benchmark Fed Funds Rate at the end of October. The Fed Funds Rate is the rate at which banks lend money to each other overnight. While an increase in the Fed Funds Rate does not directly impact home loan rates, home loan rates may increase once the Fed takes action, depending on the market and overall economy.

Despite the recent volatility in the markets, home loan rates remain attractive and near historic lows. If I can answer any questions at all for you or your clients, please get in touch!

What Is Going On In The Economy: Chinese President ( translated Dictator in English ) Xi was in the US this week with a message that China is cooperating with US in mutual efforts to grow our economies. At the same time China steals about 300 billion in intellectual property per year, is doing joint military exercises with Russia, has proposed supplanting the US dollar as the world reserve currency and has arranged cyber-attacks on our government resulting in the theft of 5 million finger prints of government employees. At the same time the markets are coming to the conclusion that the reported numbers on the Chinese economy are likely fraudulent. Maybe we should not trust such governments?  This is occurring while the Chinese economy is slowing significantly in spite of government intervention. Both Russia and China are seeing their economies slow so how do you distract people from their shrinking pocket books? Put on a military show and blame the US for your troubles. Meanwhile in Europe economies there continue to eek out meager improvements with a back drop of huge debt levels. Circumstances in the US are much better with Federal Reserve Chairman Yellen suggesting they will be able to raise rates later this year. Real Estate activity continues to improve, Gross Domestic Product readings are encouraging at a 3.9% annual increase, employment numbers are improving and inflation is coming up closer to Fed target levels. Yes we want inflation because it is the best way to effectively lower the value of the debt held by our government. We just do not want it to be too high. The Fed targets 2% per year. The rest of the world looks to the US to lead the world so they can sell stuff to us. In the meantime many think it is a good idea for the US to become more like other nations in how government relates to the free markets.

Real Estate Miscellaneous Stats

National Real Estate Markets Cool in August:  Tight supply continues to drive market conditions as US home sales slowed in August after experiencing a 6.2% increase this year. Existing home sales fell 4.8% from the previous month nationally, the NAR reports. They expect sales to be flat through the rest of the year. There are continued signs of normalizing as first time buyers moved from 28 to 32% of all buyers. Foreclosures and Short Sales are at the lowest levels in 7 years. New home sales were up 5.7% to their highest levels in 7 years after being up 12% in July. Builder confidence is at 7 year highs. 

New American Funding Recognized By INC Magazine:  New American has announced that it is again included in the Inc 5000. This is the list of the 5000 fastest growing companies in the US. New American Funding has reached this list the last 3 out of 4 years. This last year they grew 350% placing them 199thin the list of 5000. “We’re all about doing things better today than we did yesterday, and we’re focused on the experience of doing business with New American Funding,” said Rick Arvielo, CEO of New American Funding. “We’re consistent about asking our clients, partners, and employees for feedback about us. Then we do more of what they like and less of what they don’t, it’s how we remove inefficiencies and stay current with our markets. We couldn’t be happier with the results.”

Local Real Estate Markets Look Strong for August: Our markets still show resilience in the face of tight market conditions. We are starting to see people look for alternatives to high priced central markets with condos and outlying areas of the counties showing strong growth. For new households looking to live in the city researchers say a majority will rent instead of looking to buy. Condo construction is drying up in favor of apartment construction. Here are the numbers: Seattle closed sales up 1.3% from last year, Eastside up 5.6%, North King up 8.5%, Southeast King up 11.1% and Southwest King up 16.5%. Price increases continue to be high with Seattle up 15%, Eastside up 11.1%, North King up 10.3%, Southwest King up 14% and Southeast King up 12.9%. Snohomish County prices are up 11%.

 Loan Program Of The Month. Private Down Payment Assistance Program: New American Funding has access to the down payment assistance program through the Washington State Housing Finance Commission. We also have access to a private product offered by a major bank. The advantage to this program is it allows for higher household income. In our area this can make or break financing for some borrowers. Contact me for details.

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Carnation Real Estate
Suncadia Real Estate, Easton Real Estate,