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Tony’s Mortgage Minutes – Aug 31st, 2015

Days after China threw the biggest scare into Wall Street in years, U.S. stocks have come back and ended Friday on a placid note that suggested the worst may be over for now. Even so, investors are buckling their seat belts for more turbulence ahead. The DOW closed the week at 16,643.01 capping a week that saw stomach-churning losses and gains of around 600 points per day. The slow down began mostly over China, the world’s second biggest economy. But stocks soared back mid-week cutting the losses nearly in half, in a rally attributed to bargain hunting, signs the Federal Reserve may hold off raising interest rates this fall and a new report that said the U.S. economy is growing at a more robust rate than previously believe. Still, concerns that triggered the sell-off remain: Slumping oil prices, a slowing Chinese economy, weak corporate earnings forecasts, and an uncertainty over interest rates. That means there’s likely to be more market volatility ahead… something that history backs up. In the past, the month of September has been the worst for stocks (All this was in this past week’s S.A. Express News).

U.S. consumer confidence rebounded in August. It was the best showing since January. Analysts said the jump in consumer confidence should support stronger consumer spending in coming months. Let me remind folks again that 70 percent of our economy is based on consumer spending. Not China’s economic woes.

Mortgage rates tend to drop when the stock market falls. Average 30-year U.S. mortgage rates dropped last week to their lowest levels since May to 3.84 percent, according to Freddie Mac.

The National Association of Realtors said its seasonally adjusted “pending home sales index” rose 0.5 percent to 110.9 last month which marked a slight recovery from June when it fell to 110.04. So, at least all is well on the home front. Mortgage rates are still low, and home sales are still on track to be better.

Please remember me to anyone you know that may need a mortgage!

Tony Stevenson
Sr. Loan Officer | NMLS# 216213
“Your Local Loan Officer”
Direct: 210.376.6133 | Toll-Free: 800.460.6990 | Cell: 210.846.4666 | Fax: 866.782.9318
www.swbcmortgage.com
apply on-line to: www.swbcmortgage.com/stevenson
9311 San Pedro Avenue, Suite 100
San Antonio, Texas 78216

© 2015 SWBC. All rights reserved. This article is for informational purposes only and not intended for consumer distribution. Do not use it as financial and/or political advice. The opinions expressed in this article are not necessarily those of SWBC Mortgage, Century 21 The Hills Realty, or any of their affiliates. Information for this article from but, not limited to, the Wall Street Journal, S.A. Business Journal, NAMB, Real Estate on-line magazine, S.A. Express News and MBA News Link. To be removed from this email reply “remove” in the subject line. For questions/comments contact Tony Stevenson at 1.800.460.6990 or email tstevenson@swbc.com. Loans are subject to credit and property approval. Other restrictions and conditions may apply. Programs and guidelines are subject to change without notice. Rates are subject to change daily. This email is an advertisement from SWBC Mortgage Corporation, NMLS #9741. Corporate office located at 9311 San Pedro Avenue, Suite 100, San Antonio, TX 78216. 8540-5937 NMLS#9741(www.nmlsconsumeraccess.org)