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Caps Rant and Mortgage Update 11.10.14

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Blog by Doug Ingersoll | November 10th, 2014

ALL CAPS. Why do Realtors think that the MLS listing needs to be in all caps? I find it difficult to read. And I don't like being shouted at. Marketing means making a product or service attractive to the consumer.

Mortgage update from Stuart Crawford at V.I.P. Mortgage:
"The main story last week was the important monthly Employment report, which showed that wage inflation remains low.  The European Central Bank (ECB) made no change in policy and had little impact on U.S. markets.  After a quiet four days, Friday's Employment data caused mortgage rates to improve and end the week a little lower.

Against a consensus forecast of 235K, the economy added 214K jobs in October.  Revisions to prior months added 31K jobs.  The economy has added an average of about 220K jobs per month so far this year, which is the fastest pace in over ten years.  The Unemployment Rate declined to 5.8%, the lowest level since July 2008.  Average Hourly Earnings, an indication of wage increases, were just 2.0% higher than one year ago.  Bottom line, the job gains were roughly in line with expectations, but the low level of wage inflation was favorable for mortgage rates.

The results of the week’s elections were largely as expected with the Republicans gaining control of the Senate and adding to their majority in the House.  There was little immediate market reaction.  So, will a Congress lead by the GOP mean that changes are coming for the mortgage market?  The general belief is that there will be no significant changes any time soon, and probably not before the next Presidential election.  The continuing conservatorship of Fannie Mae and Freddie Mac is the biggest industry issue Congress needs to address, but the complexity of any substantive reform and the significance of Fannie and Freddie to the housing market make this a very difficult issue.

This week will be a light one for economic events.  The JOLTS report, measuring job openings and labor turnover rates, will come out on Thursday.  Retail Sales, which account for roughly 70% of economic activity, will be released on Friday.  Mortgage markets will be closed on Tuesday in observance of Veterans Day."

Stuart can be reached at 602.710.8975