Blog


For the Week Ending October 4, 2019

 

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

A recent string of disappointing economic data has caused stocks to plummet and bond yields to drop. When yields drop, mortgage rates generally improve.
The labor market, on track to add about 1.9 million jobs this year, could be faltering. It's the smallest jobs gain since 2010 and down 2.7 million from 2018.
Markets are now pricing in an October Fed policy rate cut, the 3rd in as many months. This speculation is helping mortgage rates improve.
The housing market may be a bright spot in a worrisome economy. The forecast for home sales is good due to rising demand and a projected uptick in inventory.
Single-level homes are making a comeback. One-story homes comprised 47% of new home construction in 2018, up from 45% in 2017.
Fannie Mae and Freddie Mac will be allowed to keep more earnings, a total of $45 billion moving forward, as an initial step toward exiting government control.

 

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 September 27, 2019

 

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

 

 

Consumer confidence fell sharply in September, the biggest drop in 9 months. The escalation in trade tensions with China may have contributed to the decline.
U.S. business investment contracted more sharply than estimated in the 2nd qtr. The data cast a shadow on the economy, increasing concerns of a recession.
Jobless claims increased to a 3-week high of 213,000. However, the 4-week average, a less volatile measure, fell to 212,000, the lowest since July.
According to the FHFA, July's single-family home prices came in 5% higher than the previous year. The increase marked slower but still strong growth.
Pending home sales were up in August, 1.6% over July and 2.5% year-over-year. Lack of available inventory is still being blamed for holding back sales.
New-home sales rebounded 7% in August over July, flirting with a 12-year high, and were up 18% year-over-year. Low mortgage rates likely played a role.

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 September 20, 2019

 

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

 

 

Mortgage rates were not directly affected by the Fed policy rate cut this week. Mortgage rates are based on markets that are influenced by but not controlled by Fed policy.
An attack on Saudi Arabia's oil production facilities reduced output, driving up the cost of oil. Consumers are seeing higher gas prices at the pump.
Manufacturing output increased solidly in August, but the outlook for factories remains weak amid trade tensions and slowing global economies.

 

Homebuilder sentiment surged to the highest level of the year in September. However, rising rates and the trade war with China are causing concerns.
Housing starts hit a 12-yr high in August. Both single- and multi-family home construction increased, boding well for declining inventories.
Existing home sales rose to a 17-month high in August. It was the 2nd straight month of gains, likely helped by August's low mortgage rates.

 

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 September 13, 2019

 

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

 

 

Consumer borrowing was up $23.3 billion in July, the biggest monthly gain since Nov. 2017. The increase pushed total consumer credit to a record $4.1 trillion.
Despite forecasts of a looming recession for 2020, economic data and the labor market continue to show strength.
The Fed will meet next week. Last month's meeting produced the first policy rate cut in 10 years, and speculation continues now for a second.

 

Mortgage applications to purchase a home increased 5% last week and were 9% higher than the same week a year ago. Total application volume rose 2%.
Inventories grew tighter in August, strengthening competition in the market. However, median listing prices saw their largest July-to-August drop since 2012.
The Treasury released a plan last week to recapitalize mortgage giants Fannie Mae and Freddie Mac and to release them from government conservatorship.

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 September 6, 2019

 

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

 

The August ISM manufacturing index fell to 49.1%, the lowest reading in 3+ years. A reading below 50% indicates contraction in manufacturing activity.
Private payrolls rose more than anticipated, according to ADP. The private sector added 195,000 jobs in August, better than the expected 149,000 increase.
The economy grew at a modest pace in July and August. A majority of businesses report being optimistic, and consumer spending increased solidly.

 

Construction spending grew slightly in July, by 0.1% over the revised June estimate. Residential construction spending rose 0.6% from the previous month.
Millennials are jumping into homeownership in larger numbers, driving up home prices as inventory remains an issue, according to a recent CoreLogic report. 

Home inventory for sale at the end of July was nearly 2% lower than a year ago. In July there was a 4.2-month supply of homes for sale, according to NAR.

 

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.

 


Showing results 46 - 50 of 215