Market Update March 14 2014

Friday, March 14, 2014 | 7:26 pm

Even though it was supposed to be a quiet week relating to economic data reports in the Market Update March 14 2014 edition, that did not stop the stock market from tumbling on Thursday by over 200 points. The forces behind the decline were significantly weaker than expected growth forecast for the China economy combined with continuing tension between Russia and the Ukraine. Even though economic reports for the U.S. have been improving as of late, that does not seem to be enough to counteract international challenges. In the world’s global economy, what happens clear across the globe, can have a big impact here at home.

The Mortgage Bankers Association reported that purchase applications for the week ending March 7th declined a minimal 1.0 percent. Refinance applications declined 3.0 percent. In recent weeks there has been wild swings in the MBA data. The housing market continues to improve however mortgage applications for purchases are down 17 percent from a year ago. This statistic reinforces that there continues to be a significant amount of cash buyers in the market.

The employment outlook continues to improve with first time jobless claims declining another 9,000 down to 315K in the Market Update March 14 2014. This report is far below most analysts estimations of 330K. Claims being in the low range of the 300’s is a very good sign for future labor statistics. Granted this report is only for one week however in recent times claims have been trending downward.

Retail sales made a comeback in February which is a welcome sign considering that bad weather has been playing a factor in so many areas of the country. The only negative to the report is that January’s numbers were weaker than initially estimated. Retail sales rose 0.3 percent in February after declining 0.6 percent in January (originally down 0.4 percent).

In another positive outlook for the economy is that the consumer confidence index rose last week to the second-highest level since August of 2013. Americans seem to be more upbeat about the economy and the opportunity to make purchases in the near future.

One of the biggest battles being fought is that on wages. Up until now we have been hearing about the push to increase the national minimum wage to $10.10. Many workers at various retail and fast food establishments have been pushing to receive $15.00 an hour. Thursday the wage battle escalated.

McDonald’s has been served with seven class action lawsuits in New York, California and Michigan for wage theft. The complaint states that the company has forced employees to work off the clock, and not paid overtime as well as going as far as striking hours off employee’s time cards. Between the lawsuit and the pressure to increase minimum wage, cheeseburgers are about to cost a whole lot more.

Next week there is a lot of potential market moving news and data being released.

• Monday March 17th – Industrial Production
• Tuesday March 18th – Consumer Price Index and Housing Starts
• Wednesday March 19th – MBA Applications and the FOMC Meeting Announcement
• Thursday March 20th – First Time Jobless Claims and Existing Home Sales

As your mortgage professional, I am happy to assist you with any information you may need regarding mortgage or real estate information. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at (626) 486-1775 or like our Facebook page for more updates like the Market Update March 14 2014 edition.

About Waleed Delawari

Waleed Delawari is one of Pasadena’s leading mortgage professionals. Since opening his own brokerage firm in 2001, Waleed has successfully closed over one billion dollars in mortgage loans and successfully helped thousands of borrowers purchasing Pasadena Real Estate.

To get pre-approved, contact Waleed Delawari at Delawari Financial.

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