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For the Week Ending June 14, 2019

 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

Both wholesale and consumer inflation data came in as expected this week, showing inflation is not a concern to pressure rates higher in the near future.
The Fed meets next week for its FOMC meeting. No rate changes are expected, but investors will be looking for signs of rate cuts to come in July.
The labor market appears to be losing steam. Last week's jobs data came in weaker than expected, and jobless claims also rose unexpectedly last week.

 

Mortgage applications surged last week as rates dropped. Applications were up 26.8% in just one week, and volume was 41% higher year-over-year.
Refinances led the application surge, jumping a remarkable 47% week-to-week. Purchase applications increased 10% weekly and annually.
Due to tax reforms, renters paid an average of $2,716 less in taxes last year, making it easier to save toward a possible down payment on a home.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.


For the Week Ending June 7, 2019

 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

 

Mortgage rates continue to improve as mortgage bonds reach levels not seen since 2017. The outlook remains good that rates could go even lower this year.
As U.S. trade tensions have increased, so have concerns about a global economic slowdown, helping mortgage rates remain low.
The Fed is starting to signal it is open to easing monetary policy. Recent comments have markets looking for Fed policy rate cuts later this year.

 

Construction spending was flat in April, but home construction spending declined for the 4th straight month.
Kitchen remodel expenditures jumped 27% in the past year. The median cost for upgrades was $14,000, according to a survey of over 140,000 homeowners.
Flipped homes, or homes resold within 12 months after purchase, made up 7.2% of all transactions in the first quarter, the biggest share since the start of 2010.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.


For the Week Ending May 31, 2019

Please enjoy this quick update on what happened this week in the housing and financial markets.

Economic growth in Q1 accelerated, but momentum is slowing. Inflation pressures were much weaker than initially thought, supporting lower rates.
Consumer confidence rose in May to its highest level since December 2000, thanks in large part to a healthy job market and rising wages.
However, concerns over a slowing economy and inverted bond yield curves have economists speculating that we could see a recession in the upcoming year.
According to the FHFA, home prices rose 5.1% in Q1 from a year earlier. This is slower growth than in recent years but still a historically healthy pace.
Case Shiller also reported home prices rising at a slower pace, despite falling mortgage rates. This is good news, though, for buyers entering the market. 
Pending home sales fell unexpectedly in April. Compared to a year ago, sales were down 2.0%, marking the 16th straight month of annual decreases. 

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.


For the Week Ending May 24, 2019

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

Last month's Fed meeting minutes show officials are in no hurry to move interest rates up or down, though investors are looking for a rate cut by year's end.
Recent escalation in the trade war with China has helped keep rates low and could cause more slowdown in the global economy, also helpful for low rates.
Consumers seem bullish on the economy, as sentiment reached a 15-year high. However, the reading was taken before recent trade tensions with China.
Existing home sales fell in April, likely due to high prices and tight supply at the low end of the market. Recent rate drops should counter high prices moving forward.
New single-family home size increased roughly 8% at the start of 2019, now an average of 2,551 square feet. Median home size also increased 11% to 2,335.
More baby boomers are choosing to age in place, contributing to low inventory across the country. Almost 52% of boomers say they'll never move.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.

 

 


For the Week Ending May 17, 2019

 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

 

Trade tensions with China increased this week, causing stocks to fall and bonds to improve. The shift in bond prices helped move mortgage rates down slightly.
After a big jump in March, retail sales declined 0.2% in April as consumers cut back spending on clothes, appliances, and home & garden supplies. 
Jobless claims fell more than expected last week, pointing to sustained labor market strength that should help underpin the economy if growth slows.

 

According to the NAHB monthly index, builder confidence for newly built single-family homes rose in May. It was the highest reading since October 2018.
Housing starts increased more than expected in April. Data suggests declining mortgage rates are providing further support to the housing market.
Home building's future is also looking good, with building permits rising 0.6% in April. Permits had been in decline for the previous 3 months.

 

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.


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