I walked outside my front door this
morning at 5:00AM and listened to how quiet it was. It was a quick reminder of how quiet the
markets have been this week. Veteran’s
Day contributed to the lack of craziness in market activity, however it was more
due to the lack of any major economic headlines.
Ebola headlines have virtually
disappeared from the media. The threat
of ISIS, although, not gone from our lives, has been pushed much further down
in the news reports. With the lack of
economic news or world drama this week, we were able to find out own
entertainment, or you might call it drama, right here in the United States.
The most talked about, and tweeted
event of the week was the pictures of Kim Kardashian posing nude in the
publication called the “Paper”. I have
never heard of this publication, but that does not necessarily mean anything,
because now I have. Because any and all
possible comments have been either spoken, written or tweeted regarding the
pictures, I find no reason for me to join in the fray at this time.
According to the Mortgage Banker
Association, even though mortgage rates are still very low, it is not doing
much in prompting refinance activity.
The MBA reported that applications for refinances declined another 11
percent after the prior week’s drop of 6.0 percent. Purchase mortgage applications rose a
miniscule 1.0 percent which is less than the 3.0 percent in the prior week.
It is getting towards holiday time
and unfortunately housing activity seems to be slowing. Next week a couple of housing reports will be
released, however they will be reflecting activity from September which is not
a true indicator of what is happening in the market right now.
First time jobless claims remain
low at 290,000. This is a 12,000 increase
from the prior week’s report. There are
no special factors that are attributed to the increase. This appears to only be normal fluctuations
that occur in the weekly report.
A recent study from Moody’s
Analytics is that Millennials are not saving any money. In fact on average they are running at a
saving deficit of 2% per year. Workers
from the age of 35 to 44 have a positive savings rate of 3%. Part of the Millennials savings challenge has
been related to recent years of hard to find jobs. The labor market is improving so it is
hopeful that this negative savings trend will reverse itself. It is far too early to know how the
Millennial’s savings rate will impact housing in the future.
(Since there is a lack of any other
major market headlines, I find myself with extra room in my newsletter. I guess I could go back to writing about my
thoughts on Kim Kardashian’s photos.)
JJ Mack
916-517-1800 x 300
JJ.Mack@apmortgage.com
www.apmcroseville.com
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