Weekly Market Update from The Robert Northfield Team – Week of August 12, 2019

JUST SOLD!

Our Team has been busy getting deals done this season!  Check out a few of our recent Just Solds!

 

52 Burnett Terrace, Maplewood – listed by Robert Northfield

List price: $679,000

Sales Price: $680,000

 

70 Speir Drive, South Orange – listed by Stacie Levy

List price: $879,000

Sales Price: $889,000

 

466 Ridgewood Road, Maplewood – listed by Robert Northfield

List price: $749,000

Sales Price: $730,000

 

41 Herbert Terrace, West Orange – listed by Robert Northfield

List price: $449,000

Sales Price: $475,600

Buying or Selling a home is one of the biggest personal business transactions you’ll ever make, trust the experts.  The Robert Northfield Team is the #1 Team in the area for a reason- let us put our experience to work for you!

Call us TODAY 973-544-8001


 

Financing News from Cathy Haddad of Atlantic Homes Loans:

 

Cathy Haddad
NMLS #: 51156
Production Manager
Atlantic Home Loans, Inc.
Phone: (848) 203-2272
Cell Phone: (848) 203-2272
Parsippany, NJ 07054
In This Issue  

Last Week in Review: Thinking Like an Investor

Forecast for the Week: Will Volatility Continue?

View: Three Apps to Keep You Organized

Last Week in Review  

This past week we watched home loan rates touch three-year lows as investors around the globe continue to seek the safe haven of the U.S. dollar.

Why are global investors moving money into the U.S. dollar and safe instruments like U.S. Bonds? Due to the lingering uncertainty behind the U.S./China trade dispute, global economies slowing, and central banks around the globe cutting interest rates.

All of this forces investors to search for yield in a world where many countries like Japan, Germany, Switzerland, and the like have negative interest rates, meaning investors who park their money in those countries receive no interest and a loss of principal. That’s a bad investment.

So, our 10-Year Note hit 1.59% this past week, which is a ridiculously low level, but when compared to other countries around the globe yielding negative interest rates, 1.59% looks pretty attractive. And that coupled with the relative strength of the U.S. dollar, thanks to our strong economy, is the reason why the U.S. continues to attract significant investment dollars from around the globe.

For us in the mortgage and real estate industry, we must understand that volatility is high and any glimpse of good news or a random tweet could change sentiment quickly to something more positive, which is bad for Bonds and interest rates.

Finally, as mentioned, the 10-year yield hit 1.59% before ticking back up into the 1.70s to finish the week. At the same time, the yield or interest you can receive by investing in the S&P 500 Stocks is 1.96%. At some point, investors and the financial markets start to question, if I am investing for 10 years, am I better off investing in stocks like Apple where I can receive a higher yield or interest payment than Treasuries, along with a better chance of price appreciation? When that time comes, a decline in home loan rates, which has been in place since November, will pause.

If you or someone you know has questions about home loans, give me a call. I’d be happy to help.

Forecast for the Week  

Just when you thought the summer doldrums would take place during the dog days of summer, volatility has gripped the markets the past few weeks.

That could most likely continue this week with a packed economic calendar, along with the lingering issues with China regarding trade and currency.

Earnings season will be coming to an end and the calendar is absent of any Fed speakers.

A key report in the upcoming week will be Retail Sales, which will measure the strength of consumer spending, which makes up two-thirds of the U.S. economy. The past three have seen strong numbers… we will see if the pattern continues.

Reports to watch:

  • Economic data heats up this week with the inflation reading Consumer Price Index being released on Tuesday.
  • On Thursday, Retail Sales, Weekly Initial Jobless Claims, Empire and Philadelphia Fed Manufacturing Indexes, and Productivity will be delivered.
  • Housing Starts, Building Permits, and Consumer Sentiment will be reported on Friday.
Chart: Fannie Mae 3.5% Mortgage Bond (Friday August 9, 2019)
Japanese Candlestick Chart
The Mortgage Market Guide View…  

Three Apps to Keep You Organized

As a busy working professional, trying to stay organized is often challenging. You keep notes on your phone, use the calendar to schedule meetings, and use Google maps to help with directions. However, there are other apps that can help you stay organized and help with time management. Let’s look at three of them.

Parking Panda. Parking in the city is often problematic and if you are running around town on business, it can be frustrating trying to find a good place to park. Parking Panda can help you locate and reserve parking in advance. You can search for available parking lots and garages, compare prices, and reserve your space.

Hours Keeper. This is a great app if you are self-employed and need to keep track of hours for a client or multiple clients. You can easily clock in and out so that you have a running account of the time you are working and when you take a break. Keep track of your accumulated earnings and send invoices to your clients through the Hours Keeper app.

Dashlane. With so much of your personal and financial information stored on your computer, phone, or tablet, you need a multitude of passwords for all of the web sites you use. Instead of trying to remember all of the various passwords, Dashlane will create and store them for you in one secure place. Dashlane uses a patented security system that only allows you to access the passwords and the app can be synced to all of your devices.

Download these three apps and make your life easier!

Source: Entrepreneur.com

Economic Calendar for the Week of Aug 12 – Aug 16
Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. Aug 13
08:30
Consumer Price Index (CPI)
Jul
0.3%
0.1%
HIGH
Tue. Aug 13
08:30
Core Consumer Price Index (CPI)
Jul
0.2%
0.3%
HIGH
Thu. Aug 15
08:30
Productivity
Q2
1.3%
3.4%
Moderate
Thu. Aug 15
08:30
Philadelphia Fed Index
Aug
10.0
21.8
HIGH
Thu. Aug 15
08:30
Empire State Index
Aug
1.1
4.3
Moderate
Thu. Aug 15
08:30
Retail Sales ex-auto
Jul
0.3%
0.4%
HIGH
Thu. Aug 15
08:30
Retail Sales
Jul
0.3%
0.4%
HIGH
Thu. Aug 15
08:30
Jobless Claims (Initial)
8/10
212K
209K
Moderate
Fri. Aug 16
08:30
Housing Starts
Jul
1.245M
1.253M
Moderate
Fri. Aug 16
08:30
Building Permits
Jul
1.260M
1.220M
Moderate
Fri. Aug 16
10:00
Consumer Sentiment Index (UoM)
Aug
97.7
98.4
Moderate
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without errors.
As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
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Atlantic Home Loans, Inc. Corporate Office 50 Route 46 West, Parsippany, NJ 07054.   Licensed as CRMLA CA Dept. of Business Oversight, Georgia Residential Mortgage Licensee #21177, MA Lender/Broker MC#15241, NJ Dept of Banking and Insurance, Licensed Mortgage Banker—NYS Department of Financial Service, Rhode Island Licensed Lender/Broker, Virginia State Corporation Commission License MC-3001. To view all states authorized to originate loans go to www.nmlsconsumeraccess.org and enter NMLS#15241
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Atlantic Home Loans, Inc.
Cathy Haddad
50 Route 46
Parsippany, NJ 07054
    

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