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MarketMinute | Can rate relief overcome inventory woes?

Apr 7

7:05

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

Private payrolls grew less than expected in March. ADP reported an increase of 145K, down significantly from 261K in February.

The Fed's key inflation gauge rose 0.3% in February. The less-than-expected growth provides hope the Fed may soon pause policy rate hikes.

Job openings fell below 10 million in February for the first time in 2 years, a sign the Fed’s efforts to slow the labor market may be working.

Home prices rose in February after 7 straight monthly declines, according to Black Knight. Lower rates and tight inventory boosted prices.

Tight inventory led to a 4% drop in purchase mortgage apps last week, even though interest rates fell.

New listings were down 20% year over year in March. Total inventory was about half of what it was in March 2019, just before the pandemic.

MarketMinute | Check out the reports of rising home sales and prices!

Mar 31

4:24

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

Last week's jobless claims came in at 198K, higher than expected and up 7K from the previous week.

The economy grew 2.6% during the 4th quarter. This rate was slower than both the 2.9% estimate and last month’s 2.7% growth.

The "banking crisis" that drove rates down a couple of weeks ago seems to have stabilized, with no new bank failures reported recently.

January’s FHFA House Price Index showed prices for homes purchased with a mortgage grew 0.2% for the month and 5.3% for the year.

After a sharp gain in January, pending home sales rose for the 2nd straight month in February, despite higher mortgage rates and tight inventory.

The recent drop in mortgage rates boosted mortgage applications this week. Purchase apps rose 2%, and refi apps were up 5%.

MarketMinute | The markets don't believe the Fed!

Mar 24

1:46

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

The Fed raised rates by 0.25% this week, calling for more hikes to come. Despite this, markets anticipate the Fed will have to cut rates by July.

Unemployment applications unexpectedly declined for a 2nd week. The job market remains tight with employers reluctant to lay off workers.

Short-term inflation expectations fell in March to the lowest level in 2 years, but consumer sentiment still fell due to persistently high prices.

Existing home sales rose 14.5% in February for the 1st monthly gain in 12 months and the largest increase since July 2020.

The median price of an existing home sold in February was $363K. This was a 0.2% annual decline and the first drop in over a decade.

Purchase mortgage applications increased 2% last week as the average contract interest rate fell. Refi apps increased 5%.

MarketMinute | Signs of hope for a stabilizing housing market?

Mar 17

3:24

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

Inflation fell for the 8th straight month in February, reaching the lowest level since September 2021. It remains higher than the Fed's 2% goal.

Although more jobs were created in February than expected, wage growth came in slightly slower, which helps the outlook of reduced inflation.

Retail sales fell in February after surging in January, suggesting that consumer spending is slowing down in the face of high inflation.

Single-family homebuilding and permits for future construction rebounded in February, offering hope the housing market is stabilizing.

Home builder confidence also improved for the 3rd straight month, despite high construction costs.

Purchase apps rose 7% last week. We may see an even bigger increase next week after this week’s rate drop.

MarketMinute | What might a return to normalcy look like?

Mar 10

4:33

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

In his semiannual testimony before Congress this week, Fed Chair Powell signaled a possible higher-than-expected Fed rate hike in March.

Job openings declined slightly in January but still far outnumber available workers, as the labor picture remains tight.

Labor market strength and strong economic and consumer spending data have pressured mortgage rates higher recently.

Despite rising interest rates, mortgage application volume improved 7.4% last week. Purchase apps rose 7%, and refi apps grew 9%.

Market analysis from Black Knight suggests purchase activity could be nearing the bottom before a slow and choppy return to normalcy.

Home affordability is a growing concern with just 10% of homes sold in Q4 2022 selling under $300K compared to 41% in Q4 2019.