The Market Bull – February 26, 2020
Lingering fears over the Covid-19 virus sent the major averages into the red in late trading after positive economic data failed to sustain the early gains.
The Mortgage Bankers Association reports that mortgage activity advanced 1.5% last week, while refi’s slipped .8% but purchase apps gained 5.7%. The 30-year contract rate for a jumbo loan fell to a 3-week low of 3.72%. While real estate purchase activity is expected to remain robust through the beginning of the year supported by low unemployment, wage gains and near record low interest rates. Affordability and supply issues continue to weigh on real estate markets.
New home sales handily beat expectations in January rising 7.9% to 764,000 units annualized, a 13-year high for sales. December was revised up from a previously reported decline of .4% to a gain of 2.3%. By region and all advanced except the South. While the Western region has struggled of late, January saw a second consecutive large sales gain after they jumped 23.5%. Month’s supply slipped to 5.1 while the median price advanced a respectable 13.3% to $353,700.
Standard and Poors 500 Index closed at: 3,116.39 down 11.82
NASDAQ finished the day: 8,980.77 up 15.16
Gold ended trading at: $1,643.80 down $6.20