Category Archives: Mortgage

Consumer optimism sees slight uptick in April

Consumer optimism increased slightly in April, jumping just 0.1 percentage point, according to the Survey of Consumers conducted by the University of Michigan.

The Index of Consumer Sentiment increased to 97 in April, up 0.1% from 96.9 in March and 9% from 89 in April last year. However, it is down from the beginning of April when the index increased to 98.

“Consumer sentiment continued to travel along the high plateau established following Trump’s election, with only minor deviations from its five month average of 97.4,” Surveys of Consumers Chief Economist Richard Curtin said. “There was widespread agreement among consumers on their very positive assessments of the current state of the economy as well as widespread disagreement on future economic prospects.”

An article by Jill Mislinski for Advisor Perspectives explains what this means historically:

The Michigan average since its inception is 85.4. During non-recessionary years the average is 87.6. The average during the five recessions is 69.3.

The Current Economic Conditions section slipped 0.4% from March’s 113.2 down to 112.7, but up 5.6% from 106.7 last year.

The Index of Consumer Expectations increased 0.6% from March’s 86.5 and 12.1% from last year’s 77.6 to 87 in April.

“Although the partisan divide has slightly narrowed in recent months, it still reflects a very pessimistic economic outlook among Democrats and a very optimistic outlook among Republicans,” Curtin said. “The partisan divide on the Expectations Index was 51 points in April, 61.4 versus 112.4, down from last month’s 63.1, 59.4 versus 122.5, with Republicans moderating their optimism more than Democrats reduced their pessimism.”

Curtin explained the divide is due to American’s selective perception of news.

“Favorable economic developments were cited by nearly all Republicans in April, while three-quarters of Democrats reported hearing negative news about the economy,” he said. “It is of some interest to note that the Expectations Index among self-identified Independents, who may be less susceptible to traditional political ideologies, rose to a very favorable 91.3 in April, up from March’s 85.8 and well above the pre-election October reading of 73.1.”

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Ten-X predicts existing home sales will drop in April

April is set to see a decrease in existing home sales, according to Ten-X, an online real estate transaction marketplace.

Ten-X’s Residential Real Estate Nowcast indicates a slight decrease in existing home sales in April that will fall between 5.4 million and 5.76 million with a targeted number of 5.66 million. This is a decrease of 0.7% from the National Association of Realtors’ reported March sales.

“We anticipated a strong Spring selling season, driven primarily by pent-up demand and accelerating household formation numbers, and sales activity in March and April has been the best we’ve seen in a while,” Ten-X Executive Vice President Rick Sharga said. “But some of this activity may also be due to buyers jumping into the market before interest rates rise any higher, so it’s possible that we may see sales slowdown later in the year.”

Pending home sales dropped in March, an indicator that April’s existing home sales will slip lower.

Last month, the company predicted home sales would fall between seasonally adjusted rates of 5.41 and 5.77 million with a targeted number of 5.59 million. NAR’s report came in at 5.71 million.

Ten-X predicts April’s median home price will increase to between $230,050 and $254,266 with a targeted price of $242,158. This would mark an increase of 2.4% from March and 4.2% from last year.

“The US housing market continues to advance, owing to a strong labor market and rising wages,” Ten-X Chief Economist Peter Muoio said. “Though low inventory levels remain a constraint and have spurred strong price gains, further eroding affordability, demand remains healthy and housing fundamentals continue to improve.”

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Wells’ borrowing boost sparks thoroughness fears for Home Loan banks

WASHINGTON — Wells Fargo Bank has dramatically increasing a borrowings from a Federal Home Loan Bank of Des Moines, some-more than doubling a San Francisco institution’s turn of advances and accounting for a infancy share of borrowings during a government-sponsored enterprise.

Wells borrowed $40.1 billion from a Des Moines bank, lifting a turn of sum advances with a establishment to $77.1 billion. At a finish of a year Wells’ borrowings accounted for scarcely 59% of Des Moines Home Loan bank’s sum advances.

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