“I never thought a man should make money off his friends.” – Lloyd Anderson
Freddie Mac takes weekly surveys of mortgage rates, but the mortgage market is not frozen between those snapshots. Rates fluctuate daily, which makes it essential to compare home loan terms on the same day.
It can be high or low, it may run between your toes. It relates to the sun and the sky, and it may make things fall and rise. What is it?
Last week’s riddle:
It is clear, yet it muddies things. It arrives, but it falls down and quickly runs away. What is it?
Last week’s answer:
MAIN STREET SUSTAINS ITS OPTIMISM
America’s two most respected consumer confidence indices just improved. The University of Michigan’s final April household sentiment gauge rose a full point from its initial reading to 98.8 last week, and the Conference Board’s index came in at a great 128.7 for April – 1.7 points higher than its March mark.1
HOW FAST DID THE ECONOMY GROW IN Q1?
According to the Department of Commerce, the annualized pace of growth was 2.3%. That beat the 2.0% consensus forecast from MarketWatch. The Federal Reserve believes the economy will expand 2.7% this year.1,2
SPRING BRINGS THE HOME BUYERS OUT
The National Association of Realtors says that existing home sales rose 1.1% in March; the median sale price was $250,400, 5.8% higher than last year. Census Bureau data shows a 4.0% advance for new home buying last month.3
A SLIGHT WEEKLY RETREAT FOR EQUITIES
Last week, major U.S. equity indices saw small 5-day declines, as follows: S&P 500, 0.01%, to 2,669.91; Nasdaq, 0.37%, to 7,119.80; Dow, 0.62%, to 24,311.19. The 10-year Treasury yield reached 3.03% Wednesday; it was at 2.96% at Friday’s close.4,5
THIS WEEK: March personal spending numbers and earnings news from Akamai, Allergan PLC, CNA Financial, Kemper, Loews, McDonalds, Nutri/System, and Transocean appear Monday. On Tuesday, the Street looks at the April ISM factory PMI and earnings announcements from Aetna, Allstate, Anadarko Petroleum, Apple, Archer Daniels Midland, AutoNation, BP, Brinker International, Cummins, Denny’s, Edison International, Genworth Financial, Gilead Sciences, GrubHub, Hanesbrands, Huntsman, Marathon Petroleum, Merck, Mondelez, NCR, Pfizer, Regis Corp., Seagate, Snap, Under Armour, Voya Financial, and Western Union. Wednesday, the Federal Reserve makes a rate decision, ADP issues a new payrolls report, and AIG, AmeriGas, Avis Budget Group, CBRE Group, Clorox, CVS Health, Exelon, Express Scripts, Fitbit, Garmin, Humana, Hyatt Hotels, Kraft Heinz, Logitech, Macerich, MasterCard, MetLife, Molson Coors, Prudential Financial, Smart & Final, Spotify, Tesla, Valvoline, Wyndham Worldwide, and Zynga present earnings. Thursday’s earnings roll call features Activision Blizzard, Avon, CBS, Cigna, Fluor, GoPro, Icahn Enterprises, Kellogg’s, Live Nation, Motorola Solutions, Pandora, Pinnacle Foods, RE/MAX, Vulcan Materials, and Xerox; also, ISM’s March service sector PMI arrives. On Friday, a new Department of Labor jobs report complements earnings from Alibaba Group, Boise Cascade, Celgene, Fred’s, and Starwood Properties.
|% CHANGE||Y-T-D||1-YR CHG||5-YR AVG||10-YR AVG|
|REAL YIELD||4/27 RATE||1 YR AGO||5 YRS AGO||10 YRS AGO|
|10 YR TIPS||0.79%||0.39%||-0.68%||1.56%|
Sources: wsj.com, bigcharts.com, treasury.gov – 4/27/184,6,7,8
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.
Greg R. Solis, AIF®
President and CEO
Bob Medler, CRPC®, CMFC®, AIF®
Wealth Advisor / Investment Analyst
78-075 Main Street
La Quinta, CA 92253
Office: (760) 771-3339
Fax: (760) 771-3181
The Wealth Advisors of Solis Wealth Management are also Registered Representatives with and securities and advisory services are offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC
The information contained in this email message is being transmitted to and is intended for the use of only the individual(s) to whom it is addressed. If the reader of this message is not the intended recipient, you are hereby advised that any dissemination, distribution or copying of this message is strictly prohibited. If you have received this message in error, please immediately delete.
P.S. You have my permission to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this e-mail with their e-mail address and we will ask for their permission to be added.￼
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results.
Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.
1 – marketwatch.com/economy-politics/calendars/economic [4/27/18]
2 – cbsnews.com/news/q1-gdp-2018-economy-grew-in-first-quarter/ [4/27/18]
3 – consumeraffairs.com/news/home-sales-rose-in-march-but-so-did-prices-042518.html [4/25/18]
4 – markets.wsj.com/us [4/27/18]
5 – quotes.wsj.com/bond/BX/TMUBMUSD10Y [4/27/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F27%2F17&x=0&y=0 [4/27/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F27%2F17&x=0&y=0 [4/27/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F27%2F17&x=0&y=0 [4/27/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F26%2F13&x=0&y=0 [4/27/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F26%2F13&x=0&y=0 [4/27/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F26%2F13&x=0&y=0 [4/27/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F28%2F08&x=0&y=0 [4/27/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F28%2F08&x=0&y=0 [4/27/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F28%2F08&x=0&y=0 [4/27/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/27/18]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/27/18]