|Mortgage Market Guide Monthly – Views You Can Use – July 2016|
|IN THIS ISSUE…|
“I have to let you go.” Boney M. Markets continue to sort out the British vote to “let go” of their membership in the European Union and its reverberations around the globe. We’ll abridge the long and winding road on this story and more, including:
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|”Brexit” of Champions|
After months of divisive rhetoric on Britain’s exit from the European Union (or “Brexit,” as it is known), voters went to the polls on June 23 stunning investors by opting to leave the economic and political partnership of 43 years.Many investors had been playing it safe for weeks ahead of the vote, moving their dollars into less risky Bond markets as speculation over the potential economic fallout amped up. And in the immediate aftermath of the vote, Stocks took a beating in markets around the world while Bonds here at home benefited.
This is an important story for homebuyers and homeowners who are considering a refinance. Home loan rates are tied to a type of Bond called Mortgage Backed Securities. When Bond prices improve, home loan rates tend to improve as well.
World markets will likely be volatile for some time as they digest the “Brexit” fallout. Mortgage Bonds and home loan rates here at home could continue to benefit from the uncertainty.
More Surprises Here at Home
However, there was some positive economic news to note. Retail Sales grew for the second straight month in May, as sales at clothing stores, online retailers, restaurants and bars all grew solidly.
On the housing front, homebuilder confidence in June reached its highest reading since January 2016, seeing increased expectations regarding current sales conditions, sales expectations in the next six months, and buyer traffic. Sales of existing homes also saw a boost in May – read more about that below.
The bottom line is that home loan rates remain near historic lows. If you have any questions about housing or home loan rates, or if you’d like to discuss your unique situation, please call or email today.
|What to Watch: Existing Home Sales|
Existing Home Sales illuminate the bright spot real estate can provide our economy and the long-term economic outlook.What is the Existing Home Sales report? The report measures sales of pre-owned single-family homes, condos and co-ops, as reported by the National Association of REALTORS® (NAR) from 650 local associations. It covers geographical numbers, prices, inventory and the number of months it would take to deplete the existing supply of pre-owned houses.
What’s happened recently? The NAR reported that May Existing Home Sales rose by 1.8 percent from April to an annual rate of 5.53 million, above expectations. The median home price jumped 4.7 percent to $239,700 from a year ago. Existing Home Sales were also up 4.5 percent from May 2015.
What’s the bottom line? The rise in May Existing Home Sales reflects a more than nine-year high, and NAR noted the main reason for the upturn was homeowners taking advantage of accumulated equity to trade-up or downsize. While sales of new homes did decline in May from April, the housing sector remains a bright spot in the economy overall, and suggests the economy is still on solid footing despite recent slowdowns in job growth.
With home loan rates still near historic lows, opportunities abound for homebuyers and homeowners in the near future.
I’ll continue to watch economic reports closely, but if you have any immediate questions, please don’t hesitate to contact me.
|Be an Amusement Park Insider|
Theme parks and fairgrounds offer fun for people of all ages. And you can have even more fun if you know some of the tricks of the theme park trade. Here are six ways to get more out of your visit:Don’t pay top dollar at the gate. Buy admission tickets from Groupon, follow the park’s Facebook or Twitter page for special promotions, or look for discounted ticket offers from grocery stores, fast food chains and memberships like AAA, AARP or warehouse clubs.
Skip pricey photos and souvenirs in the park, which are marked up significantly. Unless you are a super fan or collector, you can pick up souvenirs online after your visit, and sometimes find them cheaper on the park’s own website. Turn your own smartphone snaps into souvenirs with a free photo editor like LunaPic.
BYOW. It’s important to stay hydrated on hot days, but water can set you back several dollars per bottle if you buy from the park. Many parks allow you to bring in an empty bottle you can fill at drinking fountains. This will save you money and prevent overheating, which causes more theme park injuries than all other injuries combined.
Snap a photo of your parking spot, drop a GPS pin in your phone’s map app, or park near clearly recognizable features, so you can spare yourself wandering through the parking lot at the end of a long day. This can be especially helpful if you have exhausted little ones in tow.
To beat long lines arrive early. Also, weekdays and before and after students are out for summer break (i.e., early June or September) are often the least crowded.
Carnival games may not be rigged, but wins won’t come easy. Find the easiest games by watching the number of winners in a given period, or simply learn how to beat them.
Try these tips soon, and make having more fun the theme for your next amusement park visit!
Sources: Real Simple, Reader’s Digest, The Fun Times Guide
|Q&A: Airline Fare Fiasco|
QUESTION: Why does my multicity booking seem so much more expensive than it used to?
ANSWER: Recent online booking tool changes from American, Delta and United Airlines may not display the cheapest available fare for each leg of a multicity round trip (e.g., Los Angeles to New York; New York to Orlando; Orlando back to Los Angeles.) But you can save big with a little extra legwork.
Before you purchase any multicity round trip, use a third-party booking site like Kayak that lets you compare airlines. You can also check the one-way (not round-trip) fares for each leg with multiple airlines. This works because big airlines often discount one-way travel in an effort to remain competitive with discount airlines like Southwest, which specialize in those fares.
The Christian Penner Mortgage Team, A Branch of
American Financial Network, Inc
CORP NMLS# 237341 ; Equal Opportunity Employer ; Equal Opportunity Lender American Financial Network, Inc. 10 Pointe Drive, Suite 330, Brea, CA 92821.
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