Weekly Mortgage and Real Estate Report – Week of June 4, 2018

ECONOMIC COMMENTARY
Early Jobs Report 

It is unusual for the monthly employment report to be released on the first day of the month. Friday, the first day of June, was an exception. Logically, you would think that data released this early would be subject to a higher level of revisions, but we have no statistics to support that theory. What we do know is that rates have been rising all year and this report was released approximately seven business days before the Federal Reserve Board’s next meeting. A meeting in which they will consider raising rates again.

The minutes of the previous meeting of the Fed was recently released, and some analysts believe that the members were starting to hedge on predictions of more than one additional rate increase this year. The lack of inflationary wage pressures was cited as a possible justification for moving more slowly. The question is — could this jobs report change the Fed’s thinking in any way?

The addition of 223,000 jobs in May and an unemployment rate of 3.8% provide plenty of evidence for the Fed to support a rate hike. The increase of wages of 2.7% annually was within expectations, and this would provide some evidence for the Fed to support holding off for now. The Fed also indicated that the labor participation rate had moved down one-tenth of one percent to 62.7%, which contributed to the lower unemployment rate. Many believe that we would need an increase in the participation rate before we experience additional wage pressure. Everything considered, it was a strong report and the Fed will find evidence to support whichever decision they make, but most analysts are still looking for a rate increase next week.

REAL ESTATE NEWS
 For homeowners considering a move, some experts are recommending they get a home maintenance inspection before they list their home for sale. Such an inspection can provide a full picture of any repairs that need to be performed before they become negotiating points in a transaction. A home maintenance inspection is similar to a home inspection that is done by buyers, says Frank Lesh, president of the American Society of Home Inspectors. A licensed inspector can check on the main systems of the home, such as the roof, walls, foundation, HVAC, electrical, and plumbing. “You might not even notice a problem [with your home],” says Lesh. An inspector may be able to spot small problems before they become bigger, more expensive problems. They can also advise clients on the regular maintenance tasks they should be doing on their home to keep everything in tip-top shape. An inspector can walk homeowners around the property to show them any potential problems they spot. Homeowners will receive a report that details anything the inspector finds, which can serve as a to-do list to address, if they so choose. “Every three to five years, you should have a home inspector come out and do a maintenance inspection,” advises Lesh. “Like changing your furnace filter, you should do it before it gets so bad [that it becomes] a problem. … A home inspector isn’t trying to sell you anything … and isn’t going to make any money off doing the repairs.” Source: realtor.com®Aiming to simplify consumer access to real estate listings, CoreLogic announced a partnership to offer consumer-facing real estate websites to its multiple listing services clients. CoreLogic, a global information analytics and data-enabled solutions provider is set to partner with Homes.com, which was recently rated as one of the top real estate websites in the U.S. by the Consumer Affairs research team. The agreement will provide CoreLogic clients access to the Homes.com’s Fusion Portal Solution, a public website platform for multiple listing organizations. “The Homes.com Fusion Portal solution offers organizations everything they need to launch a premier real estate web portal in their local market,” Homes.com President David Mele said. Organizations taking advantage of this offer can deploy a search solution that simplifies consumer access to real estate listings. “The enhanced web presence combined with the most accurate multiple listing data, advanced search capabilities, and a contemporary and responsive interface will help multiple listing organizations expand their local presence while driving consumer inquiries back to their members,” Mele said. After a stream of acquisitions in the valuations space, it seems CoreLogic is beginning to move into the real estate territory. Could it be taking aim at Trulia, Zillow, or other MLS sites? Source: HousingWire

The National Association of Home Builders recently surveyed homeowners who have been living in their homes for a decade or longer to find out why they are choosing to stay put. Seventy percent of respondents said they weren’t moving because they like their home and are comfortable in it. Others said they did not want to go through the hassle and expense of finding another home and moving (21 percent), and one-tenth of respondents said there were no homes on the market they would want to buy or could afford. “This last finding suggests that a not-so-trivial 10 percent of people living in their homes for a decade or more could be enticed to move if only there were more homes on the market to choose from,” according to NAHB’s Eye on Housing blog. Meanwhile, NAHB’s survey found that some of the least important factors in keeping homeowners from moving were to hold onto a low interest rate (5 percent) and because their home is still worth less than their current mortgage (3 percent). Source: National Association of Home Builders

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s