Long Winter Yields to Spring Market

1425d8b58f072b41ba5f_Lamkin.png
1425d8b58f072b41ba5f_Lamkin.png

"No matter how long the winter, spring is sure to follow." -Proverb.

This winter certainly has been a long one for much of the nation, with many hoping spring makes a quick arrival. As temperatures slowly begin to thaw, recent economic reports reflect an economy in bloom. 


After falling for two months, Retail Sales rose by 0.3 percent in February, above expectations, as consumers purchased a variety of goods despite the harsh winter weather. This is important because Retail Sales make up about one-third of consumer spending, which is the main driver behind economic growth. If consumer spending can continue to expand, economic growth could go beyond the recent 2 percent levels we have seen the past few years. This will be good news for our economy. 



Sign Up for E-News

The labor market also showed signs of life last week, as Initial Jobless Claims fell to 315,000, the lowest level since the end of November. And there was good news on the housing front, as RealtyTrac reported that foreclosure filings in February declined by 10 percent from January, and are down a whopping 27 percent from the same period last year. 

What does this mean for home loan rates? Typically, good economic news benefits Stocks at the expense of Bonds, as investors try to take advantage of gains.

However, fears of an economic slowdown in China and tensions in the Ukraine helped Mortgage Bonds improve due to safe haven trading. And as home loan rates are tied to Mortgage Bonds, this was good news for rates as well. 

In addition, it's important to remember that the Fed is now purchasing $35 billion in Treasuries and $30 billion in Mortgage Bonds (the type of Bonds on which home loan rates are based) to help stimulate the economy and housing market. This is down from the original $85 billion per month that the Fed had been purchasing.

The Fed is meeting again this week, and additional tapering could be announced on Wednesday. This decision is sure to impact the markets and home loan rates, and it's an important story to monitor. 

The bottom line is that now remains a great time to consider a home purchase or refinance, as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions at all for you or your clients.

This column takes a look at current mortgage rates, market trends and indexes.  Jon Lamkin is Vice President of Mortgage Lending for Guaranteed Rate, 322 Route 46 W Suite 170 • Parsippany, NJ • 07054.  He may be reached at 973.939.8661  /  jon.lamkin@guaranteedrate.com  /  www.guaranteedrate.com/jonlamkin

The opinions expressed herein are the writer's alone, and do not reflect the opinions of TAPinto.net or anyone who works for TAPinto.net. TAPinto.net is not responsible for the accuracy of any of the information supplied by the writer.

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

SOMA

Maplewood Police Blotter - Man Arrested for Package Thefts

April 20, 2018

April 5 - Shoplifting; At approximately 3:15 p.m. officers responded to the Extra Supermarket on Irvington Ave on a reported shoplifter. Jean Legerme, age 21 of Newark was detained by security for attempting to leave the store without paying for several items. He was arrested, taken into custody and later released after being charged on a summons.

April 5 - Shoplifting; At ...

South Orange Police Blotter - Theft and Burglary Reported

South Orange Police Blotter as of April 19

Theft - An East Orange resident reported that on Tuesday, April 17, at approximately 9:20 a.m., actor(s) unknown stole some tools from a construction site on Valley Street. The stolen tools, valued at over $500.00 were a Makita brand drill set and electrical saw.

Burglary to Auto - An Irvington resident reported that on Thursday, April ...

41st Annual SOMA Interfaith Holocaust Service and March of Remembrance Held on Sunday

April 19, 2018

MAPLEWOOD AND SOUTH ORANGE, NJ - The 41st Annual SOMA Interfaith Holocaust Service and March of Remembrance was held on Sunday, April 15. The march assembled in Spiotta Park on Maplewood Avenue in Maplewood, and was called to order with the blowing of the shofar.

Local elected officials who attended included Maplewood Mayor Vic DeLuca, Maplewood Township Committee member Dean Dafis, and ...

Water Main Break on Baker Street in Maplewood Wednesday Morning

MAPLEWOOD, NJ - Shortly after 5 a.m. on Wednesday, Maplewood police reported receiving a call from a commuter on his way to work who noticed a small geyser of water in front of 34 Baker St., next to the driveway to the Maplewood Country Club. 

According to Maplewood police, they requested assistance from New Jersey American Water to shut off the water, but as of 7:10 a.m., ...

Upcoming Events

Mon, April 23, 7:00 PM

First Congregational Church, Guild Room, Montclair

A Healthier New Jersey: The Murphy Administration ...

Government Health & Wellness

Tue, April 24, 6:00 PM

The Venetian , Garfield

Prepared For Life Dinner with Captain Mark Kelly

Other

Tue, April 24, 7:00 PM

Millburn Free Public Library, Millburn

Lenore Raphael Presents Ellington and More at ...

Arts & Entertainment

Carousel_image_0e6824bc1f15389361ec_medicaid_ramsey

Tue, April 24, 7:00 PM

South Mountain YMCA-Civic House, Maplewood

Medicaid Q & A - Hosted by Adamson Ramsey Homes

Health & Wellness Real Estate

Academy Heights Residents: No More Valley Street Development Until Master Plan Approved

April 22, 2018

This past Thursday, April 19th, the South Orange Development Committee considered a presentation from developers regarding the All Star Motors site on Valley Street between 3rd and 4th. The proposal is for a 61 unit dormitory/boarding house for college students, with 175 beds and limited parking on a lot that is partially zoned for two-family residential. About 20 Academy Heights neighbors ...

Essex County Announces Partnership with Nine Local Charitable Organizations

April 20, 2018

WEST ORANGE, NJ – Essex County will participating in nine special partnerships to increase awareness about and help raise funds for the American Cancer Society, American Heart Association, the Arc of Essex County, the New Jersey Children Alliance, Stop for Nikhil, The Valerie Fund, the Arthritis Foundation, the Saint Barnabas Medical Center's Neonatal Intensive Care Unit and ...

Kiburi Tucker Sentenced to 38 Months in Federal Prison

NEWARK, NJ - Kiburi Tucker, a longtime friend of Newark Mayor Ras Baraka and the business partner of a Newark woman who admitted to tax evasion last year, was sentenced today to more than three years in prison for wire fraud and tax evasion, federal authorities announced. 

Kiburi D. Tucker, 43, of Newark, pleaded guilty in November before Chief U.S. District Judge Jose L. Linares after ...

Amazon Works to End Stigma of “Free and Reduced” Meals at School

April 21, 2018

FLORENCE, NJ – There is a widely unknown problem in schools all over America: a stigma among many children who are eligible for free or reduced lunch.

Rather than face the peer pressure of receiving breakfast or lunch through this federal program, many choose to remain hungry.

To help eliminate the practice, Amazon has partnered with Share our Strength’s “No Kid ...

Endangered Bog Turtle Plods Through Senate Towards Official Designation as State Reptile

TRENTON, NJ - The endangered bog turtle is one step closer to being designated New Jersey's official state reptile, following State Senate approval of legislation sponsored by Senator Kip Bateman (R-Somerset, Mercer, Middlesex, Hunterdon) and inspired by students from Princeton.

Riverside Elementary School Students Kyle Grzmala and Hayah Mian, and their teacher Mark Eastburn, joined ...

Medicaid Q & A - Hosted by Adamson Ramsey Homes

April 23, 2018

Hosted by Susie Adamson and Bonnie Ramsey, Hearth Realty Group & Bethany Joseph, LSW, MPH, Elder Care Consultant

Please join us for the next installment in the SOMA Series on Tuesday, April 24, from 7 p.m. to 9 p.m. at the South Mountain YMCA Civic House at 124 Dunnell Road in Maplewood.

Confused about Medicaid? You're not alone!

Allison Busch Vogel has been practicing Elder ...

Author Visit: Peter Golden at Millburn Library

The Millburn Free Public Library is pleased to welcome acclaimed journalist, novelist, and historian Peter Golden on Wednesday, May 2, 2018, at 7:00pm, to discuss his new book, Nothing is Forgotten.

Featuring Peter Golden’s signature “vivid characters and strong storytelling” (The Washington Post), Nothing Is Forgotten changes our understanding of the ...

South Orange Fencer and Origin Athlete Victoria Pevzner Captures Silver Medal in Poland

11 year-old fencer Victoria Pevzner placed second in the U-13 Girls’ Foil event at 2018 Challenge Wratislavia, an international youth fencing tournament in Wroclaw, Poland, March 22-26, 2018.

The 13 year-old and under’ girls foil event included over 180 competitors from the Czech Republic, Denmark, Germany, Great Britain, Hungary, Netherlands, Poland, Russia, Sweden, Ukraine and ...