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Time for the real estate market to move forward



However, with the Federal Reserve likely to hold interest rates on hold for the foreseeable future, there is hope that the real estate market will recover.

On Monday, the National Association of Home Builders released their latest monthly survey among builders. Confidence rose in February thanks to a decline in mortgage rates, which fell along with long-term bond yields this year.

Mortgage rates have fallen even more recently thanks to the Fed as well as concerns over the Chinese economy and recent countries Brexit drama. The 30-year fixed rate mortgage reached 4.31% last week, its lowest level in over a year.

"The real estate market is benefiting from stock market volatility," said Odeta Kushi, deputy chief economist at First American. "We have a lot of catching up to do with the older millennials sitting on the sidelines, waiting to be homeowners. Lower interest rates should boost home sales."

Kushi said the recent job report also offers good prospects for housing. Although the number of additional jobs was disappointing, wages continued to rise. And that could help people who want to save money so that they can either live or rent at home to buy a house.

It points to the recent increase in housing construction and the completion of housing as a good sign. The offer is bigger than before.

"The real estate market remains focused on a strong spring," said Joel Kan, vice vice president of economic and industry forecasts for the Mortgage Bankers Association. He wrote in his latest report on mortgage applications. The volume of loan applications rose by 2.3% earlier this month.

"We are beginning to see signs of new housing construction and inventory, which will increase the purchasing opportunities for many home buyers who have been hampered by continued supply shortages," Kan added.

The latest MBA figures on mortgage applications will be released on Wednesday.

  fears of a real estate downturn may be exaggerated.

All of this could lead to a turnaround in February home sales sold by the National Association of Realtors on Friday. Sales declined 1.2% from December to January. But Kushi believes they recovered last month.

This should also be good news for real estate stocks, which already had a solid start to 2019, in the hope that the market is ready for a big comeback.

The SPDR S & P Homebuilders ETF [ XHB ) – including major builders such as Lennar and Toll Brothers, as well as companies affiliated with the homebuilder such as Roomba Vacuum Maker iRobot [ IRBT ) and Appliance Giant Whirlpool ( WHR ) – has risen by 17% this year.
] Retailer Williams-Sonoma ( WSM ) who is also a member of the contractor ETF, will report revenue on Wednesday. Wall Street expects a 7% increase in sales and a 17% jump in profits.

. 2 Fed's Cutback : The Federal Reserve will make its last interest rate decision on Wednesday at 2:00 pm ET and Chairman Jerome Powell will speak at 2:30 pm. No rate hike is expected, so it will be hot to see if the Fed suggests changes to the so-called quantitative tightening policy.

The Fed decided in 2017 that the US economy was healthy enough to begin selling the central bank assets it had devoured to stimulate recovery after the Great Recession. Critics say the Fed's decision to cut its balance has contributed to economic turmoil. The Federal Reserve has signaled that it could stop or slow down the $ 4 trillion in asset relief, which has thrilled investors.
3. FedEx and the Economy: The company has already warned that global problems, including trade and economic slowdowns, could bring a major slump this year. FedEx ( FDX ) reduced its earnings outlook by 7% to 10%, with the deepest cuts in international business.

The company will make quarterly gains Update on Tuesday after market close. Given macroeconomic issues, which remain a major concern, investors will look at how this affects one of the world's largest courier companies.

4. Nike's Zion Problem: It was the crack that was heard around the world when the basketball star Zion Williamson of Duke after his Nike [19659015] [ NKE ) Sneaker during a match broke with top rivals North Carolina last month. As a result, the company's stock fell. Nike said it was an "isolated incident", but with March madness starting this week, another wardrobe malfunction is the last thing Nike needs.

Nonetheless, Wall Street expects good news from Nike when it generates revenue on Thursday after the bell. Sales are expected to increase by almost 7%. However, given the recent signs of a soft economy in these economies, investors will pay attention to everything the company says about demand in China and Europe.

5th Upcoming Week:

Monday – Overstock.com ( OSTBP ) and Lumber Liquidators [LL) Merit
Tuesday FedEx ( FDX ) Merit; DSW ( DSW ) Investor Day
Wednesday General Mills ( GIS ). merit; Crude oil inventories; Federal Reserve Interest Rate Decision
Thursday – Result from Darden Restaurants ( DRI ) Tencent TCEHY ) and Nike ( NKE ) ; Levi Strauss IPO expected; Interest rate decision of the Bank of England; EU leaders meet to call for British Brexit's delay
on Friday by Tiffany & Co ( TIF ) to discuss; Sales figures for February

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