December Markets in a Minute

December Markets in a Minute

December 21, 2017

The Economy

Both chambers of Congress have approved the final version of the tax reform plan. President Trump should sign it into law on or before January 3rd.

Third quarter economic growth estimates were lowered slightly from 3.3% to 3.2%. Even still, the economy grew at its fastest pace in more than two years.

Despite a jump in the number of filings for unemployment benefits last week, the underlying trend in jobless claims remained consistent with a strong labor market. Unemployment rates in Dallas/Fort Worth remain lower than national averages, and can be attributed to a strong and diverse North Texas economy. To better serve the diverse job market in the DFW area, Jeff Kramer offers a number of mortgage options to potential homebuyers. Ranging from specialty VA loans, to loan programs designed for doctors and dentists, we can help you find your perfect mortgage.

Housing News

Existing home sales hit an 11-year high in November, despite tight inventory. They rose 3.8% on a year-over-year basis, rising for the 3rd straight month.

New home starts were above expectations for November, at 1.297 million (annualized rate). Single-family housing units surged to a more than 10 year high. Pointing to further future increases in inventory, single-family home permits rose 1.4% to 862,000. This is a level not seen since August 2007.

December 14, 2017

The Economy

Tax reform is moving forward. Lawmakers are currently reconciling the Senate and House versions. The GOP is trying to get it done before 2018.

The Fed raised policy rates at this week’s meeting, as expected. The rate increase actually helps to keep mortgage rates low for the near term. The Fed is expected to raise rates three times in 2018, based on current forecasts. The policy rate increases could pressure mortgage rates higher for next year.

Housing News

Homebuilders that focus on entry-level housing are expected to flourish in 2018. A growing economy, solid job market, and low mortgage rates are driving demand.

In its 2018 forecast, Realtor.com predicts home prices will go up 3.2% and sales will increase 2.5%. Inventory is also expected to rise. Mortgage rates remain low, and mortgage applications remain high. New purchase applications were 10% higher than a year ago this time.

December 7, 2017

The Economy

The Fed will meet next week for the final FOMC meeting under Fed Chair Janet Yellen. Jerome Powell has been approved by Congress to take over in 2018.

Jobless claims declined for the 3rd straight week. A strong labor market could support a Fed policy rate increase at next week’s meeting.

The tax reform that is fast-tracking its way through Congress is fueling stocks. The expected economic growth from the plan could push rates higher in 2018.

Housing News

The proposed tax reform plan would cut the mortgage interest deduction on new purchases. However, economists don’t think it will have any effect on the housing market.

Millenials now make up the largest segment of new homebuyers. They are buying the greatest share of starter homes and low-t-mid tier home as well. Due to the competitive landscape of the Dallas/Fort Worth housing market, first-time homebuyers are strongly encouraged to get pre-approved for a home loan.

Construction spending hit a record high in October. Private residential spending rose 11.2% year-to-date, with new single-family construction up 9%.

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.

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