Snoqualmie Pass Real Estate, Snoqualmie Pass Properties,
Snoqualmie Pass Homes, Snoqualmie Pass Lots, North
Bend Real Estate, Snoqualmie Real Estate, Carnation 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.
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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.
 August 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.
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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 199th
in 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
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