Weekly Update:

Good morning and happy Monday!

Winter is here in the great north.  We have a full-blown winter advisory and snow is blanketing our parking lot this morning.  And it is only November 11th.

No one likes to go on home tours in the snow, so it is no surprise that home sales are down,  although the snow is not to blame this time.  Existing home sales have remained lackluster despite record low unemployment and low mortgage rates.  Homeowners are now staying in their homes for nearly 13 years, up from eight years as recently as 2010. This has resulted in the inventory of available homes for sale to decline from 3 per 100 households as recently as 12/2007 to just 1.25 per 100 in 9/2019.  This is a decline of 58% and the lowest level since the 1980s.

On the automotive side of the world, there have been a few articles this last week on the growth of auto loans.  The Wall Street Journal highlighted a gentleman who has a $45,000 loan for a $27,000 car.  The higher loan amount covered the negative equity in the previous loan.  Longer loan terms and rolling of negative equity is causing some angst in the auto loan market.

As we enter mid-November, we need to remember the great movie Escanaba in da Moonlight as the annual deer hunting tradition kicks off this week in Michigan.  Enjoy the snow and the woods.

Contact your MFA advisor to discuss ways to grow profitability in a low yielding yield curve.  All of us at McQueen Financial are dedicated to your long-term success.

Have a great week!

Charley

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