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

 

 

  • The Fed meets next week for the last FOMC meeting of the year. A policy rate cut is not expected, but markets will be looking for signs of what may happen in 2020.

 

  • Trade talks with China continue on a 'phase one' deal. A trade deal is expected to boost the global economy, and a deal announcement could pressure mortgage rates higher.

 

  • The trade deficit dropped to its lowest level in nearly 1-1/2 yrs in October, suggesting trade could contribute to economic growth and higher rates in the 4th quarter.

 

 

  • Federal regulators expressed cautious optimism on the use of alternative credit models to expand access to credit and enable consumers to obtain more favorable rates and terms.

 

  • CoreLogic reports that October house prices were up 3.5% year-over-year. Prices increased month-over-month by 0.5%.

 

  • NAR forecasts the possibility of record low housing inventory in 2020. A shortage could lead to higher prices and make it even more challenging for buyers to find a home. 

 


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

  • Trade talks with China are still moving markets. Investors worry the 'phase one' deal is taking too long, but China's chief negotiator Vice Premier Liu He says he is "cautiously optimistic."
  • October Fed meeting minutes show Fed officials felt risks to the economy remained elevated, even as they agreed to hold off on further rate cuts.
  • Unemployment applications last week unexpectedly remained at 227,000. The Fed minutes showed officials viewed labor market conditions as strong despite a slowdown in job growth.

  • Housing starts were up in October, with single-family construction rising for a 5th straight month. Home construction permits jumped to more than a 12-year high.
  • Homebuilders remain confident in the housing market, spurred in part by low mortgage rates. This is the 4th month at least half of surveyed builders reported positive buyer traffic.
  • October's existing home sales increased 1.9%, beyond expectations. Tight supply combined with low rates to boost home prices, which grew at the fastest pace in more than 2 years.


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

 

 

Trade talks with China continue, as the two sides try to reach a 'phase one' deal. A signed deal could pressure mortgage rates slightly higher, as it is expected to improve the economy.

 

October's consumer prices saw their largest gain since March. Underlying inflation picked up slightly, supporting the Fed's stance of holding off on more rate cuts in the near term.

 

Producer prices rose by the most in 6 months in October, due to gains in the costs of goods and services. Rising inflation follows fairly upbeat economic data, including strong job growth in October.
   

 

According to NAHB's Housing Trends Report, 12% of adults are considering a home purchase within the next 12 months. Roughly 60% of these will be first time buyers.

 

NAR recently approved MLS Statement 8.0 or the Clear Cooperation policy. Listing brokers are now required to submit listings to the MLS within 1 business day of marketing to the public.

 

Despite a rise in unconventional mortgage lending, economists do not believe we're headed for a mortgage meltdown. These loan types represented less than 3% of all loans made in 2018.

 


 

 


30 YEAR FIXED MORTGAGE RATES
 

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

 

 

Continued progress in trade talks with China is helping stocks rally to record highs and driving bond yields higher. Increased bond yields are pressuring mortgage rates higher.

 

U.S. service companies grew at a faster pace in Oct after sinking to a 3-yr low in Sept. Measures of sales, new orders and employment all rebounded from the previous month.

 

Jobless claims fell more than expected last week. Along with last week's payroll gains, this shows consistent strong labor market conditions and continued job growth. 
   

 

Construction job openings increased in Sept on a year-over-year basis. The estimated number of job openings was 338,000.

 

CoreLogic's House Price Index for Sept showed house prices continue to go up, rising 3.5% year-over-year. Prices were 0.4% higher in Sept than in August.

 

Down payment assistance on FHA loans increased from 30% in 2011 to 40% in 2018. Also, a new study debunks the myth that down payment assistance buyers are more likely to default.

 


For the Week Ending November 1, 2019

 

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

 

The Fed cut policy rates by 0.250% this week, the 3rd cut in as many meetings. A Fed rate cut doesn't directly impact mortgage rates, other than HELOCs.
Weekly jobless claims rose more than expected last week. The numbers still support a solid labor market.
Consumer spending increased marginally in September, while wages were unchanged. Inflation was also muted, helping to keep mortgage rates low.

 

Home prices rose 3.2% in August, up from the 3.1% gain in July, according to Case-Shiller. Prices in the nation's 10 major cities rose 1.5%.
Pending home sales rose 1.5% in September over August, the second straight month of gains. Sales were 3.9% higher than in September 2018.
Homeownership rates rose in the 3rd quarter to 64.8%, up 0.7% from the 2nd quarter. The uptick is attributed to 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.

 


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