China Sends Tariff Bomb and Stocks Blow Up

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Mortgage and Lending with The Federal Savings Bank/Lending in 50 states NMLS # 109616

Credit availability for mortgages rose in April with a big rise seen in the jumbo arena, reports the Mortgage Bankers Association (MBA). The MBAs Mortgage Credit Availability Index rose 2.1% in April to 186.0. A decline in the index indicates that lending standards are tightening while increases in the index are indicative of loosening credit. "Credit supply increased 2 percent in April and was driven by a 7 percent gain in the jumbo index, which reached its highest level since the beginning of the MCAI in 2011," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting.

A recent report by Trulia found that for the first time in more than two years, housing inventories did not decrease annually in the first quarter of 2019. In the first quarter, inventories did not decline from the previous year for the first time since the third quarter of 2016. Inventory grew year-over-year in exactly half of the nation’s 100 largest metro areas, up from just 19 one year ago. The report concluded by saying that nationally, more starter and trade-up homes is positive news for potential homebuyers, especially for first-time homebuyers, who tend to be more budget conscious.

The breakdown of trade talks between US/China have pushed stocks around the globe lower. The headlines are also pushing bond yields lower. The White House is said to readying tariffs of 25% for practically all imports from China into the US while China is also set to raise tariffs on $60 billion of US imports into China. There are no talks planned for the near future. The uncertainty is likely to be positive for mortgage rates though headlines from the trade front could turn positive at any time.

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Ambassador
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Well we knew China was going to retaliate and that's exactly what they did. Now who is going to make the next move?

May 14, 2019 02:17 PM #1
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