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Time for the housing market in the spring ahead



But with the Federal Reserve likely to keep interest rates on hold for the foreseeable future, there is hope that the housing market will begin to recover.

On Monday, the National Association of Home Builders will be their latest monthly survey of builders. Confidence rose in February, thanks to a decline in the mortgage rate, which has coincided with long-term bond yields this year.

Mortgages have fallen even further last, thanks to the Fed, as well as concerns about China's economy and the recent Brexit drama. The 30-year fixed rate mortgage hit 4.31% last week, the lowest level in more than a year.

"The housing market benefits from stock market volatility," said Odeta Kushi, vice president of finance with First American. "We have lots of busy demand from older millenniums that are sidelined and waiting to be homeowners. Lower prices should push home sales."

Kushi said that the latest work report also contributes well to housing. Although the number of jobs added was disappointing, salaries continued to rise. And it can help people trying to save money so they can go from living at home or renting to buying a house.

She pointed to a recent increase in home construction and housing composition as another good sign. The supply is larger than it had been.

"The housing market is still ready for a strong spring," said Joel Kan, assistant director of the Financial and Industrial Forecast for the Mortgage Bankers Association, who writes in his latest report on mortgage applications. The loan increase volume rose 2.3% earlier this month.

"We are starting to see signs of more new housing construction and inventory, which increases the buying opportunities of the many home retailers who have been hampered by the ongoing lack of supply," added.

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

  Fear of housing decline may have been overblown

All this can lead to a turnaround in existing home sales for February, which will be released by the National Association of Realtors on Friday. Sales fell 1.2% from December to January. But Kushi thinks they are recovering last month.

It should be good news for housing-related stocks, which have already had a solid start in 2019 hoping the market is ready for a big comeback. – which includes large builders such as Lennar and Toll Brothers, as well as housing related companies such as Roomba vacuum maker SPDR S & P Homebuilders ETF [ XHB iRobot ( IRBT ) and apparatus giant Whirlpool ( WHR ) – is up 17% this year.

] Dealer Williams-Sonoma ( WSM ) who is also a member of the ETF builder, will report earnings Wednesday. Wall Street expects sales to increase by 7% and profits jump 17%.

2. Fed's balance shrinks : The US central bank will make its last course decision on Wednesday at 14.00 ET, and Jerome Powell's chair will speak at 14:30. No interest rate increase is expected, so the hot topic will be whether the Fed will hint at changes in the so-called quantitative austerity policy.

The Fed decided that the US economy was healthy enough for the central bank to sell off assets that it gobbled up to stimulate recovery after the major recession. Critics say that Fed's decision to shrink the balance has contributed to economic turbulence. The Federal Reserve has signaled that it might stop or slow down the $ 4 trillion worth of assets, which has prompted investors.
3. FedEx and the Economy: The company has already warned that global problems, including trade disputes and economic downturns, could make a big blow to the bottom line this year. FedEx ( FDX ) slashed his profit outlook by 7% to 10%, with the deepest cuts coming to his international business.

The company submits a quarterly earnings update on Tuesday after the markets close. And given macroeconomic issues remains a major concern, investors will be looking for how it affects one of the world's largest curve companies.

4. Nike's Zion Problem: There was rip heard around the world when Duke basketball star Zion Williamson injured his knee after his Nike ( NKE ) Sneaker broke during a matchup with top-ranked North Carolina last month. This led to the company's stock being able to dip. Nike said it was an "isolated occurrence" but with March Madness starting this week, another wardrobe is the latest Nike needs.

Anyway, Wall Street is waiting for good news from Nike when it puts money on Thursday. Sales are expected to rise by almost 7%. But investors will be aware of what the company says about demand in China and Europe, given the latest signs of softness in these economies.

5. Coming this week:

Monday – Overstock.com ( OSTBP ) and Timber Liquidators ( LL ) Earnings


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