(661) 284-1150 | 28368 Constellation Road | Suite 398 | Santa Clarita, CA 91355

Happy Labor Day {Market Update} September 4th

Happy Labor Day {Market Update} September 4th
September 4, 2017 abryant

Are you already thinking about the long weekend? Why not take a few seconds to relax now?

Wishing you a happy Labor Day doing the things you love most!

 

When cheese gets its picture taken what does it say?

Never drive faster than your guardian angel can fly.

“THE IMPOSSIBLE…” what nobody can do until somebody does…….

Would a fly without wings be called a walk?

 

And Now The Market Update . . .

 

The GDP grew by 3.0% in the 2nd quarter, higher than estimates of 2.7%. The improving economy could support a Fed rate hike later in the year.

Despite the GDP growth, a strong labor market and rising home prices, inflation continues to stagnate. This lack of inflation could help keep mortgage rates low.

Consumers are showing the 2nd-highest level of confidence in the economy since 2000, according to survey responses through August 16th.

 

Existing home sales unexpectedly fell in July, hitting their lowest monthly level of the year. However, home sales were still up 2.1% from the previous year.

Lack of properties for sale is blamed for the low numbers. Inventory is now down 9.0%, declining for the 26th consecutive month on a year-over-year basis.

Strong demand coupled with tight inventory continues to drive up home prices though. The median house price was $258,300, a 6.2% increase year-over-year.

Time will tell, but it is possible that homeowners now seeing the run-up in prices slowing, may elect to start placing their homes on the market.

This could bode well for a very strong Fall market as the pent-up demand for housing would likely rapidly absorb any new inventory that appears.

Additionally, the stabilizing of prices keeps home affordability in check potentially increasing the number of buyers who can qualify to purchase bolstering housing strength.

 

I can’t believe that the highway department called my son a thief. But when I got home, all the signs were there.

 

This week’s potential market moving reports are:

Monday, September 4th:         US Holiday: Labor Day – All Markets Closed

Tuesday, September 5th:         Factory Orders

Wednesday, September 6th:   MBA Mortgage Applications & ISM Non-Mfg Index

Thursday, September 7th:       First Time Jobless Claims & EIA Petroleum Status

Friday, September 8th:            Wholesale Trade & Consumer Credit