Lake Oswego Real Estate Oregon Financing Update

If we take a quick recap of the past week, there were three top headlines that consumed the newswires. We saw the FOMC statement on Wednesday, the House passing the Health Care Reform Bill on Thursday, and the Non-farm payroll report for April on Friday. Starting with the FOMC on Wednesday, there was little excitement that came from the Official Statement. The Fed Funds rate was left unchanged with no signals of any definite rate hike coming in the June meeting. The Fed did note that the economic data of late has been on the softer side, specifically with consumer spending weakening. Inflation, although still below the 2% target, is still expected to reach that mark within the next 12 months. There were no comments made about the balance sheet reinvestment except that the Fed will continue to buy MBS as they invest the proceeds of the current book. Overall, no real changes out of the Fed and market reaction was overly muted.

Thursday, we saw the House vote and pass the Health Care Reform bill by a vote of 217-213. As expected, the new bill would eliminate many of the provisions of the Affordable Care Act. President Trump promised that premiums and deductibles will be coming down under the GOP plan and said that he feels “confident” the measure will make it through the Senate. Bottom line is that both parties agree that if something is to be done, it’s going to be a long road ahead.

Finally, non-farm payrolls for April were released Friday, showing 211k new jobs. The headline was better than market expectations of a 190k increase. Diving into the number, the government saw a strong showing for April as jobs grew by 17k in that sector. Private payrolls grew by 194k, which was close to market consensus. Looking at revisions, the March report was actually revised even lower on the headline number, down to only 79k new jobs from a previously reported 98k. If we look at the total now between March and April, the data shows a 290k job creation which is back in line with what economists are projecting. To conclude, the unemployment rate surprisingly dropped to 4.4%, average hourly earnings rose .3%, while the average workweek notched up from 34.3 to 34.4. Overall, the April data is unlikely to change any of the Fed’s outlook and does not remove a June rate hike from the cards.

Looking at the market and interest rates, the 10yr note has made its way back toward support around ~2.35/36% this week. A push through that level would suggest yields test a ~2.39%, then ~2.45% level in the week(s) ahead. For us to have a shot at lower rates again in the short-term, 10s would have to see a strong push back through resistance around ~2.24%. Until that time, a defensive strategy is what we continue to suggest, meaning lock in your loans and move on down the road. Looking ahead to next week, the overall schedule is on the lighter side to start us off, but CPI and Retail Sales data will come into play on Friday.

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There are links above to search for real estate.  I have a new website where you can search or you can use my mobile phone app as well. My website and mobile app provide you with access to all listings available on the RMLS™ system regardless of who the listing agent or brokerage may be. Listings are updated frequently throughout the day giving you the information you need, when you need it.

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low but are increasing, and there is still a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1978 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2018. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is in violation of federal copyright laws.

 

 

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