KPA Wealth Weekly: Market Shakeups, Rate Drops & Smart Money Moves

Welcome to KPA Wealth Weekly, your source for the latest in financial and mortgage markets. Each week, we share economic updates, rate trends, and tips to build a strong financial foundation.

Let’s dive into this week’s highlights!

• Mortgage Interest Rates

• Stock Market Update and Trends

• Financial Numbers This Week

• Real Estate Market Update: Signs of Life for Buyers?

• This Week’s Wealth Strategy

Mortgage Interest Rates

Stock Market Update and Trends

UGH. Wall Street had a brutal week, with the S&P 500 slipping 1.5% and the Nasdaq tanking 3.2%, marking its worst weekly performance since last September. Even the Dow dropped about 2.6%, wiping out previous gains as investors ditched riskier assets. Sentiment took a hit mid-week after consumer confidence plunged to a four-year low, and Trump’s trade tariffs on Canada and Mexico rattled markets, raising fears of higher costs and slower growth. Even Broadcom's (AVGO) strong earnings, which saw a 25% revenue increase to $14.92 billion and a 77% surge in AI revenue to $4.1 billion , couldn't stop the bleeding, as mega-cap tech stocks saw their worst single-day drop of 2025 on Thursday. Then came Friday: a weak jobs report (with unemployment ticking up to 4.1%) had everyone nervous about a slowdown—except for traders, who saw it as a signal that the Fed might cut rates sooner than expected. The result? Bond yields plunged, stocks staged a late-week rebound, and the market ended the week as a chaotic mix of losses, hope, and confusion.

Key Takeaway: Market is bearish. The bottom should be near. Buy the dip!

Notable Earnings This Week:

This week’s earnings reports presented a mix of outcomes across various industries. Here's a quick summary:

• Broadcom (AVGO): The semiconductor giant reported robust fiscal first-quarter results, leading to an 8.4% rise in its stock price.

• Hewlett Packard Enterprise (HPE): The company experienced a significant decline, with shares dropping over 13% due to disappointing earnings and announcements of upcoming layoffs.

• Gap Inc. (GPS): The retailer's stock surged 17% after surpassing profit expectations, signaling a positive turn for the company.

• Costco Wholesale (COST): Shares declined 6.6% after the company missed earnings estimates, raising concerns among investors.

These varied results highlight how forward guidance and broader market sentiments can heavily influence investor reactions, even when companies meet or exceed earnings expectations.

Financial News This Week

Here’s a concise summary of this week’s financial news:

Labor Market:

• Employment Growth: In February 2025, the U.S. economy added 151,000 jobs, slightly below expectations. The unemployment rate edged up to 4.1% from 4.0% in January.

• Sector Highlights:

  • Healthcare and Social Assistance: Continued to show strength with consistent job additions.​

  • Federal Government: Employment declined by 10,000 jobs, reflecting impacts from recent policy changes. ​

Manufacturing:

• ISM Manufacturing PMI: The index registered at 50.3 for February, indicating a slight expansion in the manufacturing sector. ​

• Core Business Goods Orders: Experienced a modest increase of 0.8%, suggesting steady demand in the business sector. ​

Trade and Tariffs:

• New Tariffs Implemented: On March 4, 2025, 25% tariffs on Mexican and Canadian imports to the U.S. took effect, escalating trade tensions. Canada and China announced reciprocal tariffs, heightening concerns about global trade dynamics. ​

Monetary Policy:

• Federal Reserve Outlook: The recent uptick in unemployment and moderate job growth have led to increased speculation about potential interest rate cuts by the Federal Reserve in the coming months.

Real Estate: Buy or Sell?

Real Estate Market Update: Signs of Life for Buyers?

The housing market is still tight, but buyers are finally seeing a little bit of relief.

Here’s the latest:

📉 Home sales slowed – In January, existing-home sales fell 4.9% from the previous month, landing at an annual pace of 4.08 million. The slowdown was largely thanks to last year’s mortgage rate spikes (since January sales reflect December contracts). But here’s the surprise – sales were actually 2% higher than a year ago, marking the first year-over-year increase in months.

🏡 More homes are hitting the market – Housing inventory rose 3.5% from December to 1.18 million units. That’s a 16.8% jump from last year, and new listings in January were up 12% year-over-year. More choices = a bit more leverage for buyers.

📈 Prices are still climbing – The median existing-home price hit $396,900 in January, up 4.8% from last year. While buyers have more homes to pick from, sellers are still calling the shots in many areas.

💡 So, is it a buyer’s market? Not quite. More inventory is helping, but supply is still well below pre-pandemic levels, and many homeowners are hesitant to sell due to their ultra-low locked-in mortgage rates. Homes in high-demand areas are still moving quickly, though the frenzy of bidding wars has cooled.

🏆 Bottom line: The market is slowly balancing out, making it less brutal for buyers than last year. If you’re looking to buy, there’s more breathing room. If you’re selling, properly priced homes are still in demand, just maybe without the 20-offer bidding wars. With mortgage rates easing, the spring market could heat up fast. Stay tuned!

This Week’s Wealth Strategy

Leverage Rate Drops to Reduce Interest Costs: One smart move in the current environment is to capitalize on the recent dip in interest rates by refinancing high-interest debt. Mortgage rates have fallen to their lowest levels in months, and many homeowners are already seizing the opportunity.

If you have a mortgage (or other loans) at a much higher rate, consider exploring a refinance to lock in a lower rate. Reducing your interest rate even by a percentage point or two can translate into substantial savings on monthly payments and tens of thousands saved over the life of the loan. Be sure to weigh closing costs and ensure you’ll stay in your home long enough for the refinance to pay off. Beyond mortgages, the same principle applies: whenever interest rates retreat, it can be a great time to consolidate or refinance expensive debt (such as credit cards or student loans) to a cheaper rate. Over time, paying less interest means more of your money goes toward building wealth – whether through principal paydown, investments, or other financial goals – instead of servicing debt.

Thank you for reading! If you found this newsletter helpful, please share it with anyone who might benefit. Stay tuned for 1-2 posts every week with the latest market updates and insights.

Kyle Allgair
CEO of KPA Home Loans
📞 (279) 977-8149 | ✉️ [email protected]
🌐 KPAhomeloans.com

Kyle Allgair is the CEO of KPA Home Loans, with years of experience helping clients build wealth through real estate and strategic financial planning. Contact him for personalized advice on achieving your financial goals.