September Markets in a Minute

September Markets in a Minute

September 6, 2018

The Economy

Trade issues continue to help keep mortgage rates low. Talks continue between the U.S. and Canada, but tensions are escalating between the U.S. and China.

The White House Concil of Economic Advisers says wages are growing faster than "traditional measures" indicate. Wage inflation can contribute to rising interest rates.

Last week, jobless claims fell to a 49-year low as private payrolls rose in August. The sustained labor market strength should continue to drive economic growth.

Housing News

CoreLogic's Home Price Index report for July shows home prices across the U.S. rose by 6.2% year-over-year. However, home price increases are decelerating.

A recent Harvard Business School study reveals the "Starbucks Effect" on home prices. The authors say a new Starbucks raises prices by 0.5% in a ZIP code.

A Redfin survey shows recent increases in mortgage rates aren't scaring away buyers. Only 2.6% had decided to postpone their search.

September 13, 2018

The Economy

Trade tensions with China continue to help keep mortgage rates low. Although more talks are expected, new tariffs could be imposed any time.

Overseas central banks kept rates unchanged this week. Since many oversease unvestors buy U.S. Treasuries and bonds, this helps keep rates low.

The Fed meets next week for their Federal Open Market Committee meeting. They are expected to raise policy rates, but mortgage rates should be unaffected.

Housing News

Homes for sale are not lingering on the market for long. Propertiese typically sold in 27 days, shorter than the 30-day median from a year ago.

Less time on market suggests that we are still very much in a seller's market, and continues to reinforce the importance of pre-approval for homebuyers. If you're looking to purchase a home in the near future, you should get pre-approved and avoid the risk of missing out on your dream home. We offer a number of loan options, including VA home loans, first-time buyer loans, and self-employed home loans. If you're looking for an experienced Dallas/Fort Worth mortgage lender, give us a call to discuss loan options.

Although mortgage rates have moved up a bit, mortgage purchase applications were actually up 1% over the previous week and were up 4% over last year.

Younger Americans are waiting longer to get married, according to CNBC. However, marrying later means they could have more money for home buying.

The strategy of waiting to purchase a home until a little later in life can be great for younger buyers. In addition to saving more money for a down-payment, most first-time homebuyers may qualify for first-time homebyer assistance.

September 20, 2018

The Economy

Mortgage rates crept up this week to the highest levels since May. Market indications and analysis suggest they will not fall any time soon.

Consumer sentiment rose to a 17-year high last week. Confidence improved as consumers grow more optimistic about the economy and their personal finances.

The labor market also continues to show strength and is considered at or near full employment. Unemployment filins for last week fell to a near 49-year low.

Housing News

Home builder sentiment rose unexpectedly in September to its strongest level in 11 months, prompted by renewed interest in purchases following a summer lull.

Housing starts rose in August, boosted by a jump in multifamily construction and a rise in single-family homebuilding. Building permits, however, fell slightly.

Existing home sales were unchanged in August, following 4 months or declines. Supply continues to be an issue, although demand remains strong.

September 27, 2018

The Economy

The Fed met this week and raised policy rates 0.25%. This rate increase did not cause mortgage rates to rise though, as they are not tied directly together.

The Fed is expected to hike policy rates again in December and 3 more times in 2019. Strong employment and increaeing inflation would support these hikes.

Unemployment filings were up last week, mainly due to states hit by Hurricane Florence. However, the national figure remains near a five decade low

Housing News

Home prices are still rising, albeit at a slower pace. Case-Shiller shows prices rose 6% annually in July, down from 6.2% in June.

Pending home sales were down slightly in August for the 4th month. Tight inventory, rising rates and increased prices are being blamed for hampering sales.

New home sales rebounded in August after 2 months of declines. However, rising borrowing costs and increasing home prices could temper further improvement.

If you’re looking to purchase a home in the Dallas/Fort Worth area, please take a minute to explore our Dallas/Fort Worth mortgage options, or complete an online mortgage application to get pre-approved.

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.

Markets in a Minute provided by Surefire CRM.

Check out the full story here: September Markets in a Minute

August Markets in a Minute

August Markets in a Minute

August 2, 2018

The Economy

The Fed elected to leave policy rates unchanges at this month's meeting, as was expected. Markets have already priced in 2 more rate hikes this year though.

Consumer spending increased solidly in June, helping drive the economy. Inflation also rose moderately, which could pressure rates higher in the future.

Although the labor market continues to show strength, the construction industry is struggling with labor shortages. Young job seekers just don't seem interested.

Housing News

Home prices were up 6.4% for the year in May, supported by low rates and tight inventory. The pace of price increases is showing signs of slowing.

Pending home sales were down in June from the previous year as inventory continues to be an issue. However, sales were up 0.9% compared to May.

Tight real estate inventory in the Dallas/Fort Worth area is a clear indication of the importance of buyers getting pre-approved for their mortgage. Lack of inventory means that there are more buyers than there are homes, so anyone looking to buy needs to be ready to move quickly once they've found their new home. We specialize in VA loans in Dallas/Fort Worth, first-time homebuyer assistance programs, self-employed mortgage loans, and FHA loan options. Contact us today to get started on your pre-approval.

Construction spending recorded its biggest drop in more than a year in June. Homebuilding has been slowing due to rising material costs and labor shortages.

August 9, 2018

The Economy

Although last week's jobs numbers were lower than expected, employment remains strong. Unemployment claims this week unexpectedly fell to 213,000.

The strong labor market and robust economy are pushing up inflation, which could pressure rates higher. Import duties are also boosting price pressures.

Inflation and strong labor market data have economists forecasting the Fed will raise rates twice more in 2018. Mortgage rates have already factored this in.

Housing News

According to the National Association of Realtors^®, the median price for a single-family home nationwide is at a record $296,000. That's an increase of 5.3% year-over-year.

Weekly mortgage application numbers were down 3% from the previous week. The drop is being blamed on tight inventory and rising home prices.

CoreLogic's Home Price Index shows home prices rose by 0.7% in June over May. CoreLogic forecasts prices will increase 5.1% in the year going forward.

August 16, 2018

The Economy

Instability in the Turkish economy has concerned investors in markets globally. A flight to safety in U.S. bonds has helped mortgage rates this week.

Bolstered by a strong economy, small business confidence is at a 35-year high. Owners are reporting difficulty in filling positions, a sign of the strong labor makret.

Jobless claims fell for a 2nd straight week last week. The data suggests there is no impact yet on the labor market from ongoing trade tensions.

Housing News

New home construction was less than forecast in July, but still increased 0.9%. Permits for future construction were up 1.5% over the previous month.

Homebuilder sentiment fell to the lowest point in almost a year as affordability becomes a bigger worry. However, demand remains strong as rates remain low.

Home searches are stretching on longer as buyers look for the perfect space. Buyers say they are not finding the features they want or a price they can afford.

Regardless of the real estate market, buyers should be encouraged to make informed purchasing decisions, and should not be pressured into making offers on homes that they are not financially viable, or that they aren't truly interested in. This is where having an experienced team committed to customer satisfaction makes all the difference in your homebuying experience.

August 23, 2018

The Economy

The minutes released from the Fed's meeting last month reflected a belief that the economy was growing and a rate hike will be appropriate "soon."

Economists anticipate the Fed will raise rates twice more this year. Markets have already priced in the increases, so mortgage rates likely won't be affected.

Although talks have resumed between the U.S. and China, the trade war continues to escalate. Tariffs are inflationary and could contribute to higher rates.

Housing News

Existing home sales tumbled to a 2 1/2 year low in June, the 4th month of declines. Tight inventory and high prices have some buyers throwing in the towel.

New home sales were also down. A 1.7% drop in July brought them to a 9-month low. However, reports indicate the inventory of new homes is increasing.

Prices continue to rise, up 1.1% from the previous 3 months and up 6.5% from a year earlier. Price gains did slow from the first quarter though.

If you’re looking to purchase a home in the Dallas/Fort Worth area, please take a minute to explore our Dallas/Fort Worth mortgage options, or complete an online mortgage application to get pre-approved.

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.

Markets in a Minute provided by Surefire CRM.

Check out the full story here: August Markets in a Minute

July Markets in a Minute

July Markets in a Minute

July 5, 2018

The Economy

Manufacturing activity surged in June, as companies accelerated production in advance of expected tariffs.

Stocks continue to suffer as concerns remain about the effect of tariffs on trading. Apprehension about a trade war isn't helping mortgage rates much either.

The labor market appears to be near full strength, even as weekly jobless claims were up last week. The jobless rate is at an 18-year low of 3.8%.

Housing News

Overall construction spending was up 4.5% year-over-year in June and 0.4% over May. For residential constructon, spending was up 0.8%.

Single-family home construction spending was up 8.2% in June over the previous year. Multi-family housing spending was also up 4.2% year-over-year.

Millenials really do want to be homeowners. In a recent survey, 36% of the 500 respondents reported taking a second job to save for a down payment.

First-time homebuyers need to make sure they have an experienced mortgage team in place that is committed to finding them the best motgage options. The Jeff Kramer Team specializes in getting Dallas/Fort Worth first-time homebuyers approved, and will help you find available resources, including first-time homebuyer assistance for qualified buyers.

July 12, 2018

The Economy

Consumer prices barely rose in June, but the underlying trend points to inflation. Rising inflation will likely lead to more Fed rate increases and higher rates.

Producer prices rose more than expected in June, another factor pointing to inflation. This jump was the largest annual increase in 6 1/2 years.

Although trade war concerns have escalated, there's not a lot of fear that this will hurt the economy. In the meantime, mortgage rates have remained stable.

Housing News

Homeowners have an estimated $5.8 trillion in accessible equity, the highest ever recorded. Despite this, fewer owners are taking cash out than in previous eras.

If you've been considering a cash-out refinance for your Dallas/Fort Worth home, contact us today for details and to learn how quick and easy the process can be.

Inventory remains tight, but could loosen up a bit in the near future. Inventory increased 12.2% in the 2nd quarter, the biggest gain since early 2015.

Although refinance applications were down last week, purchase applications rose 7% for the week and were 8% higher than the same week a year ago.

July 19, 2018

The Economy

Retail sales rose for a fifth straight month in June. A tight labor market and lower taxes have supported solid gains in household purchases.

Investors say the economy has plenty of steam despite bond market and trade fears. A flattening bond yield curve has caused concern in some circles.

The number of filings for unemployment benefits fell last week, hitting its lowest level in more than 48 1/2 years. The labor market continues to strengthen.

Housing News

As expected, the National Association of Home Builders (NAHB) Housing Market Index remained at 68 this month. The reading indicates a strong level of builder confidence in the new home market.

Inventory shortages have extended to land shortages as well. Homebuilding fell to a nine-month low in June, and permits declined for a third straight month.

While permits to build single-family homes rose 0.8% in June, they trailed starts, suggesting moderate gains in single-family homebuilding in the months ahead.

July 26, 2018

The Economy

Talk of tariffs and trade concerns continue to help keep mortgage rates low. However, the strong economy and labor market could pressure rates higher.

Recent comments by President Trump about raising rates are not likely to affect the Fed's plans. One or even two policy rate increases are still expected for 2018.

The European Central Bank is seeing inflation increase overseas and should end economic stimulus this year. This could pressure future mortgage rates higher.

Housing News

Existing home sales continued to slide in June, to a 5-month low. A persistent shortage of properties on the market drove house prices to a record high.

New home sales also dropped to an 8-month low in June. Demand remains high, but builders are struggling with labor shortages and material costs.

Fifteen more states can now accomodate fully digital home closings. A total of 265 million homebuyers can now enjoy fully online closing processes across the country.

If you’re looking to purchase a home in the Dallas/Fort Worth area, please take a minute to explore our Dallas/Fort Worth mortgage options, or complete an online mortgage application to get pre-approved.

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.

Markets in a Minute provided by Surefire CRM.

Check out the full story here: July Markets in a Minute

June Markets in a Minute

June Markets in a Minute

June 7, 2018

The economy

June's Federal Open Market Committee (FOMC) meeting is next Wednesday. The Fed is widely expected to raise policy rates by 0.250% at this meeting.

Mortgage rates have already factored in a Fed rate increase. However, rates are creeping up after geopolitical tensions in Italy have dissipated.

The European Central Bank also meets next week. If the ECB announces plans to reduce stimulus, rates could be pressured slightly higher.

Housing news

Volatility in mortgage rates from geopolitical tensions helped push rates lower last week. Mortgage purchase applications rose 4.1% week-over-week

Freddie Mac reports that 46% of first-quarter purchase mortgages were to first-time buyers. This marks the largest share recorded, dating back to 2012.

If you're looking for the best loans for first-time homebuyers, give the Jeff Kramer Team a call at (972) 930-5922, and let us help you buy your dream home.

Homes in lower price ranges are appreciating faster than more expensive homes. Prices rose 9.3% year-over-year for homes priced 75% or less of the median.

June 14, 2018

The economy

As expected, the Fed raised policy rates a quarter percent at this week's meeting. The increase will likely have little impact on long-term mortgage rates.

The surprise came with the Fed's statement that two more rate hikes are likely this year. That's one more than initially projected.

Strong economic indicators support the rate changes. Jobless claims dropped 4k from last week, and last month's retail sales were higher than anticipated.

Housing news

Median priced homes are flying off the shelves, so to speak. A recent industry analysis pinpointed the median listed-to-sale time frame at 64 days, a post-recession low.

A recent Fannie Mae surver found sellers more positive than buyers. Price increases paired with rising rates are tempering buyer attitudes.

CoreLogic reports the average U.S. homeowner gained $16,300 in home equity over the last year. Increaed equity gives owners more flexibility in selling and financing.

If you've been in your Dallas/Fort Worth home for a while, you may consider a cash-out refinance to take advantage of your home equity. We specialize in finding homeowners the perfect loan options for their situations, including refinance options and cash-out refinance.

June 21, 2018

The economy

Tariffs imposed by President Trump have elicited retaliation from countries around the globe. Concerns about a trade war have helped mortgage rates.

Fed Chair Powell recently confirmed the case for continuing to raise interest rates remains "strong." He cited solid economic growth and full employment.

Jobless claims have falled for the 4th straight week. Employers are increasingly reporting labor shortages, which are likely to lead to wage growth and inflation.

Housing news

Home builders are excited by strong demand for housing. However, they are frustrated with labor shortages and rising costs for lumber.

New housing starts surged to an 11-year high of 1.35 million in May. Both single-family and multi-family home construction increased.

Existing home sales fell last month, as a shortage of properties pushed prices to a record high. At May's sales pace, unsold inventory is at a 4.1-month supply.

June 28, 2018

The economy

Consumer confidence was down slightly in June, suggesting economic growth may temper a bit. Economists said trade dispute concerns were to blams.

Some economists even think that escalation of trade tensions could tip the economy into recession. However, the Fed doesn't seem too concerned yet.

The economy did slow more than previously estimated in the first quarter of 2018. But growth appears to have accelerated again on the back of a strong labor market.

Housing news

New home sales climbed 6.7% in May, led by sales in the South. New home sales have risen 8.8% for the first 5 months of 2018.

Home values continue to rise, but at a slightly slower pace than we've seen recently. In April, values tracked at 6.4% annually, down from 6.5% in March.

Pending home sales slipped, falling for the 5th straight month in May. Tight inventory continues to get the blame.

If you’re looking to purchase a home in the Dallas/Fort Worth area, please take a minute to explore our Dallas/Fort Worth mortgage options, or complete an online mortgage application to get pre-approved.

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.

Markets in a Minute provided by Surefire CRM.

Check out the full story here: June Markets in a Minute

April Markets in a Minute

March Markets in a Minute

April 5, 2018

The economy

Factory activity slowed in March, but growth in the manufacturing sector is still going strong. More companies showed signs of expanding than shrinking.

Tariffs on goods from China continued to dominate the headlines this week. Trade war concerns have helped keep mortgage rates from rising.

Jobless claims were up on the week, but jobless rolls fell to the lowest level since 1973. A tightening labor market could boost wage growth, leading to inflation.

Housing news

Construction spending was up in February after being unchanged in January. Spending on private residential projects increaesd 0.7%, after falling in January.

Home buyers are blowing their budgets to snag their dream houses as prices rise. A third of buyers pent an average of $16,000 more than they planned. If you are looking to purchase a home in 2018, take a look at our affordability calculator to get an idea of your housing budget.

Rising home prices may keep some out of the market. A recent Freddie Mac survey finds 67% of current renters view renting as more affordable than owning.

April 12, 2018

The economy

Minutes released from last month's Federal Open Market Committee meeting show the Fed still plans on 2 more rate hikes this year. Inflation is a concern, as is a trade war with China.

Consumer prices fell for the first time in 10 months in March, mainly due to cheaper gas prices. However, underlying inflation continued to increase.

A tightening labor market is also expected to contribute to higher inflation this year. Jobless claims fell once again last week, despite a slowdown in job growth.

Housing news

Over 32% of consumers surveyed by Fannie Mae say it's still a good time to buy a home. Almost 39% say it is a good time to sell a home.

CoreLogic recently found rising debt-to-income ratios among buyers. This could reflect confindence in the economy and comfort with higher monthly debt obligations.

Single-family homes were the fastest growing type of rental between 2007 and 2016. Their share of the rental market increaed by 31% in the last decade.

April 19, 2018

The economy

The labor market continues to show strength, with unemployment of 4.1% nearing the Fed goal of 3.8%. Jobless claims this week were down to 232K.

Members of the Fed have expressed expectations to rise this year. Higher inlflation will likely contribute to higher mortgage rates.

After 3 months of declines, retail sales were up in March. The increase was fueled by auto sales and big-ticket household purchases.

Housing news

March housing starts were up even more than expected. The increase included a rebound in multi-family home construction.

Although confidence among builders dropped slightly in April, the confidence index remains in solid territory. Buyer demand for new housing is still strong.

Spring has sprung for mortgage demand. Total mortgage applications were up 4.9% for the week, and purchase applications were up 10% over a year ago.

April 26, 2018

The economy

Concerns over inflation and a spike in Treasury yields drove rates up this week. The 10 year Treasury broke the 3% yield mark for the first time since 2014.

While inflation is growing domestically, lack of inflation is still a concern overseas. The European Central Bank is continuing economic stimulus, helping to keep rates lower here.

Consumer confidence rebounded in April, pointing to underlying strength in the economy. Strong confidence is likely to fuel an increase in consumer spending.

Housing news

New home sales, which account for 11% of the housing market, increased 4% in March. That's an 8.8% increase from a year ago, a big jump.

Home prices continue to surge, even as mortgage rates rise. Home values jumped 6.3% in February over the previous year, according to Case-Shiller.

The number of homeowners benefitting from the mortgage tax break is expected to drop by half in 2018. Only about 20% of all taxpayers have used the break in recent years.

If you’re looking to purchase a home in the Dallas/Fort Worth area, please take a minute to explore our Dallas/Fort Worth mortgage options, or complete an online mortgage application to get pre-approved.

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.

Markets in a Minute provided by Surefire CRM.

Check out the full story here: April Markets in a Minute

March Markets in a Minute

March Markets in a Minute

March 1, 2018

The economy

New Fed Chair Jerome Powell appeared for his first time in front of Congress this week. He moved markets with his upbeat economic views, pressuring rates.

Consumer prices increased in January, and inflation posted its largest gain in 12 months. Inflation pressures rates higher, including mortgage rates.

The labor market continues to show strength as well. Filings for unemployment benefits fell last week to the lowest level in almost five decades.

Housing news

Home prices accelerated in December, according to a recent Case-Shiller report. Prices were up 6.4% year-over-year with continued strong buyer demand.

Pending home sales were down 4.7% in January. However, the drop is likely due to tight inventory and bad weather rather than increased mortgage rates.

Buyer traffic was strong in January, but listings fell to an all-time low, down 9.5% year-over-year. This can continue to fuel price gains.

March 8, 2018

The economy

President Trump's proposed tariffs continue to spark talk of a trade war. this has caused uncertainty in markets, helping stabilize rates in the near term.

Although jobless claims last week came in higher than expected, the labor market remains strong, supporting a likely Fed policy rate increase this month.

The European Central Bank has shown confidence in the overseas economy and inflation. A strong global economy can pressure mortgage rates higher this year.

Housing news

New home prices are likely to be pushed higher as builder costs increase. Lumber prices are up 25% over the same time last year.

Homebuyers are demanding more from their homes. A 2-car garage, granite countertops, and wald-in closet are now often cited as "essential" home features.

New tariffs on steel could drive up the cost of building apartment buildings and condos. Single-family homes, made of wood, are less likely to be affected.

March 15, 2018

The economy

Consumer inflation was less threatening in February according to the recent CPI data. If inflation rises too quickly, mortgage rates could follow.

Concerns over import tariffs and possible trade wars continue to plague markets and could cool the economy. This could help keep rates from rising.

The Fed is expected to raise policy rates at next week's meeting. the change has already been priced into mortgage rates and likely won't have further impact.

Housing news

A recent survey shows Baby Boomers want high speed internet and to live near grocery stores and hospitals. Over 90% said they plan to stay in their own home.

Another poll found more than 70% of homeowners in their home for 10+ years aren't moving because they like their home. Another 21% don't want the hassle of a move.

The NAR found that 40% of potential millennial home buyers would start their property search online, while 15% said they would call an agent first.

The Jeff Kramer Team specializes in first-time buyer home loans. Contact us and learn more about how we can help find the perfect mortgage solution for your individual situation.

March 22, 2018

The economy

As expected, the Fed raised policy rates at this week's meeting. While they alluded to only two more hikes this year, rising inflation could necessitate more.

The institution of tariffs, most recently against China, can contribute to rising inflation by limiting free markets. Inflation fuels rising interest and mortgage rates.

After rising quickly early in the year, mortgage rates have stabilized. Nonetheless, further increases are expected through the rest of the year.

Housing news

Existing home sales were up 3% in February, despite a chronic shortage of inventory. That's 1.1% higher than February 2017, showing strong demand.

Tight inventory, especially for homes in the lower price ranges, is the new normal. Housing inventory was down 8.1% from a year ago this time.

Along with interest rates, rents have been rising. A recent survey concluded that the largest 250 U.S. cities saw rents grow year-over-year by an average of 2.7%.

March 29, 2018

The economy

Although a short week for markets, there was lots of economic data to digest. The week overall was positive for rates, helping to rebound from recent highs.

Consumer spending rose slightly for the second straght month in February. The PCE data suggests a moderation in inflation after prices pushed higher in January.

The labor market appears to be near full strength as jobless claims came in lower than expected. This is the 95th straight week claims were below 300,000.

Housing news

New home sales were down in February but are trending up. Although down month-over-month, February's numbers were 0.5% higher than a year ago.

Rates have stabilized, and loan applications increaed 4.8% last week. Purchase apps increased 3.1% week-over-week and were 8.2% higher than a year ago.

Pending home sales were up 3.1% in February, although down slightly from last year. Demand remains strong, but inventory levels continue to be an issue.

If you’re looking to purchase a home in the Dallas/Fort Worth area, please take a minute to explore our Dallas/Fort Worth mortgage options, or complete an online mortgage application to get pre-approved.

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.

Markets in a Minute provided by Surefire CRM.

Check out the full story here: March Markets in a Minute

February Markets in a Minute

February Markets in a Minute

February 1, 2018

The economy

The Fed didn't raise policy rates at this week's Federal Open Market Committee (FOMC) meeting, though their announcement pointed to a likely increase when they meet in March.

Consumer spending increased in December, a reflection of the strong labor market. However, the 2.4% national savings rate was the lowest since 2005.

The Fed believes that inflation could reach their 2% target this year. Supported by a growing economy, inflation pushes rates (including mortgage rates) higher.

Housing News

National home prices continued their run higher in November, rising 6.2% annually. Home prices are rising more than three times faster than the rate of inflation.

Despite tight inventory, pending home sales were up 0.5% in December over November. The supply of homes for sale is at its lowest level since 1999.

If you're in the market to purchase a new home, you should make sure you're ready to buy and get pre-approved. Fill out an online mortgage application today.

Construction spending increased more than expected in December. Private residential projects rose to their highest level since March 2007.

February 8, 2018

The economy

Mortgage rates have consistently crept up a little each week through 2018, hitting 4-year highs. Even still, rates are historically low, which may make it a good time to buy.

The rising bond yields responsible for higher mortgage rates have also shaken up the stock markets. There is a lot of fear that we may see accelerated inflation.

The outlook for 2018 is good for the economy, and the Fed is expected to raise policy rates. It's likely mortgage rates will increase some more this year.

Housing news

Mortgage applications have been on the rise recently despite higher rates. Applications were up 5% last week compared to the same time last year.

Swift price increases and inventory shortages are frustrating renters looking to purchase. Still, 58% of those polled say now is a good time to buy.

Robot open houses? Technology at San Francisco-based Zenplace enables agents to show properties remotely. A live agent speaks through a video monitor and controls the robot's movements.

February 15, 2018

The economy

Consumer prices rose more than expected in January, fueling fears that inflation is moving higher. Rising inflation will continue to pressure mortgage rates higher.

The labor market is still showing strength, with jobless claims remaining below the 300,000 threshold. Wages are also showing signs of increasing.

Rising inflation and the strong labor market have economists thinking the Fed may actually raise policy rates 4 times this year instead of 3.

Housing news

Higher rates are affecting mortgage applications, which were down 4.1% overall last week. Purchase applications were still 4% higher than last year though.

Two-thirds of home buyers said they search 3+ months before going under contract. 27% said they were outbid by another buyer.

In a recent survey, only 6% of home shoppers said they would stop their current home search if mortgage rates were to rise above 5%. Not too bad.

February 22, 2018

The economy

Minutes from the Fed's last FOMC meeting point to more policy rate hikes ahead. Officials have seen an increase in economic growth and an uptick in inflation.

The Fed doesn't control mortgage rates, yet rates are influenced by the Fed's actions. As the Fed raises policy rates this year, mortgage rates will likely follow.

Jobless claims hit a new 45-year low last week, pointing to strong job growth in February. A strong labor market supports the growing economy.

Housing news

Existing home sales fell unexpectedly in January, possibly due to tight inventory and rising mortgage rates. Home supply has declined for 32 straight months.

New housing starts were up though, to a 1-year high of 1.326 million in January. Building permits soared to their highest level since 2007.

While builders are busy creating new homes, condos are lacking. Condos are 7% of the multifamily market (down from an average of 22% from 1985-2003).

If you’re looking to purchase a home in the Dallas/Fort Worth area, please take a minute to explore our Dallas/Fort Worth mortgage options, or complete an online mortgage application to get pre-approved.

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.

Markets in a Minute provided by Surefire CRM.

Check out the full story here: February Markets in a Minute