Weekly Market Update from The Robert Northfield Team – Week of August 19, 2019

JUST SOLD!

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

 

23D W. Roselle Ave, Roselle Park – listed by Noah Guber

List price: $139,000

Sales price: $145,000

 

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:

Last Week in Review  

This past week we watched Bond yields/interest rates decline around the globe on rising fears of a global recession.

It’s worth noting that home loan rates did not partake in the declining interest rate party this week as the Treasury market, not the Mortgage Backed Security market, received the majority of investment dollars.

A recession is defined as two consecutive quarters of negative growth, so when Germany reported its economy shrank or contracted, financial markets were spooked and investors fled into the safe haven of the U.S. dollar and U.S. denominated assets like Treasuries.

The flood of capital into the U.S. caused our 10-year Note yield to drop sharply and beneath that of the 2-year Note yield, causing a yield curve inversion for the first time since 2007… right before the global financial crisis.

History has shown that each time the 10-year yield moved beneath the 2-year yield in the last 50 years, a U.S. recession followed sometime in the next 22 months.

So, is the U.S. headed for a recession? Maybe, and the chances increase everyday as the U.S. economy is in the midst of the longest economic expansion (without a recession) in our nation’s history.

Could the yield curve inversion be a false signal this time around? Also, a maybe.

With term premium or the added yield investors demand to park their money in long-term Bonds declining for over 30 years, it’s more likely to see yield curve inversions today. And with global yields collectively at 120-year lows and negative around much of the globe, money is literally pouring into our Treasury market as our anemic 1.59% 10-year yield is relatively attractive.

The chance of a recession in 2020 has climbed to about 30%. It will be interesting to see what happens with a couple of Fed rate cuts before 2019 ends.

A U.S./China trade deal, while not likely soon, would go a long way to help lift uncertainties and help many global economies possibly avoid recession.

Bottom line: the risk of recession has risen, but we are not seeing a recession in the cards at the moment. Being the cleanest shirt in the laundry, the U.S. is attracting investment dollars in droves and helping cause an inversion. Home loan rates have not declined further as the gains in the Bond market have been limited to the Treasury market. So if you are in the market to either buy a home or refinance, today is a great day to do so.

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  

The increased volatility due to the Fed, trade and currency issues, an inverted yield curve, and a boatload of economic data, is likely to continue next week despite only a few market-moving reports set for release.

The main event will be Thursday’s Federal Reserve Bank of Kansas City’s Economic Policy Symposium in Jackson Hole, Wyoming. The event brings together economists, financial market participants, academics, U.S. government representatives, and news media to discuss long-term policy issues of mutual concern. Topics include inflation, labor markets, and international trade.

With global recessions fears, disinflation, and central banks around the world introducing new stimulus, there will be a lot to address and the possibility of many market-moving comments.

The week will also feature the minutes from the July 31 Fed meeting, as investors look for more clues as to the future direction of interest rates.

Given the Symposium, there will be no Fed speak around the country during the week, and there are no Note or Bond offerings from the Treasury.

Reports to watch:

  • Existing Home Sales will be released on Wednesday, followed by Weekly Initial Jobless Claims on Thursday, and New Home Sales data being released on Friday.
Chart: Fannie Mae 3.5% Mortgage Bond (Friday August 16, 2019)
Japanese Candlestick Chart
The Mortgage Market Guide View…  

Listen to Business Podcasts for Inspiration

Podcasts are a fabulous way to learn about a variety of topics and are the perfect way to get inspiration for personal and professional success. Listen to podcasts in your car, while commuting on the train, or when working out at the gym. Here are a few suggestions of business podcasts to listen to that will help you overcome obstacles and roadblocks to success.

  • “The Tim Ferriss Show”: From the author of “The 4-Hour Work Week,” Tim Ferris, this is one of the most popular podcasts from Apple Podcasts. He interviews successful people and they share secrets to their success. Included are morning rituals, exercise habits, time-management tips, and their favorite books.
  • “Entrepreneurs on Fire”: Hosted by John Lee Dumas, known as JLD, this award-winning podcast will get you excited to create the life you have always dreamed of. JLD interviews famous and highly successful business people and they share their tips and tricks.
  • “Eventual Millionaire”: If you are ready to make lots of money, then this podcast will inspire you to achieve this goal. Hosted by Jamie Masters, this successful businesswoman interviews brilliant and bright millionaires to learn their secrets.
  • “Rise and Grind”: From one of the sharks at the famous show, “Shark Tank,” Daymond John’s podcast gives you a no-bones approach to achieving success. He interviews successful entrepreneurs who have worked hard, hustled, and climbed their way to success. Daymond and his guests give you actionable steps and tips for overcoming obstacles.

Be prepared to be inspired and take action today toward your success with these highly rated podcasts.

Source: Entrepreneur.com, Small Business Trends

Economic Calendar for the Week of Aug 19 – Aug 23
Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Wed. Aug 21
14:00
FOMC Minutes
7/31
NA
NA
HIGH
Wed. Aug 21
10:00
Existing Home Sales
Jul
5.35M
5.27M
Moderate
Thu. Aug 22
08:30
Jobless Claims (Initial)
8/17
215K
220K
Moderate
Fri. Aug 23
10:00
New Home Sales
Jul
660K
646K
Moderate
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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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