Napa Mortgage News

The French.....The Senate.......and MOM!

May 20th, 2017 9:49 PM by Dale DiGennaro

Dear Gena,

I hope you had a very nice weekend celebrating mom!

My mom is awesome...and although I had to honor her from a distance this year...I will be visiting her in Oregon this weekend.

I was at the Capitol in Sacramento last week with other members of The California Association of Mortgage Professionals. We have six potential bills that we were discussing with our Assembly men/women and Senators.

One that was being voted on this afternoon will eliminate your mortgage interest deduction for a second home, to fund an increase in low income housing tax credits. And...although its a good thing to assist with low income housing, we don't want it to come at the expense of the mortgage interest tax deduction you benefit from.

Working together with the realtors association, we hope that our efforts will keep this bill from passing so those of you that have second homes with a mortgage, can keep the deduction.

VISIT OUR WEBSITE

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THINKING OF SELLING OR EVEN DOING A REFINANCE...
Our "Home Price Index" will take into consideration your original purchase price & date of home purchase to determine...

according to the appreciation rate for the region you live in...whether it is a good time for you to refinance now or....if you are getting ready to list your home...what a reasonable value for your area would be. You can also sign up to receive a quarterly report of your homes value based on the up to date analysis of your region.

Just a couple of ways that Custom Lending keeps you informed of our changing market place so you can make the best financial decisions for you and your family!

French Election and

U.S. Data

A victory by Macron in the French election was viewed as negative for mortgage rates early in the week, while Friday's weaker than expected U.S. economic data was positive. These influences were roughly offsetting, and mortgage rates ended the week with little change.

Sunday's French Presidential election featured one pro-EU candidate, Macron, and one anti-EU candidate, Le Pen. While Macron remained comfortably ahead in the polls, investors still had to consider that an unexpected victory by Le Pen could lead to a French exit from the European Union (EU). Macron did win the election, and investor concerns were eased. They reacted by shifting back to riskier assets such as stocks, and away from safer assets such as mortgage-backed securities, causing a small increase in mortgage rates.

On Friday, a downside miss in key data on inflation and economic activity was good news for mortgage rates. The April core consumer price index (CPI), which excludes the volatile food and energy components, rose 0.1% from March, below the consensus of 0.2%. Core CPI was 1.9% higher than a year ago, down from 2.0% last month and from 2.3% in January.

For most of 2016, inflation appeared to be trending higher, but it has reversed direction so far this year. In addition, retail sales in April rose 0.4% from March, which was a nice improvement from the slight gains seen in March, but it was below the consensus for an increase of 0.6%. Weak consumer spending was a big factor in the slow GDP growth seen during the first quarter.

Looking ahead, it will be a light week for economic data. The NAHB housing confidence index will be released on Monday. Housing Starts and Industrial Production will come out on Tuesday. The Philadelphia Fed regional manufacturing index will be released on Thursday.

Senate Chambers with Senator Mike Morrell

Senator Mike Morrell of the 23rd district in SoCal

took us into the Senate Chambers and shared

some of the inner workings of the Senate.

Senator Mike Morrell with Dale DiGennaro


Assembly member Marc Levine's office


	Commissioner Wayne Bell of the Bureau of Real Estate spent some time with us.

"Thank you for always trusting in us to do the best for you and your family and please feel free to call me anytime you have questions. I will be happy to share with you whatever information you may need!"