November Markets in a Minute

November Markets in a Minute

Novemebr 30, 2017

The Economy

Third quarter GDP numbers showed the economy grew by 3.3%, in line with expectations. This was the quickest pace of growth in 3 years.

The likelihood of tax reform being signed into law by the end of the year is increasing. The tax reform is expected to spur economic growth for 2018.

The Fed is expected to raise policy rates this month, but that shouldn’t have much effect on mortgage rates. Markets have already anticipated the rate hike.

Housing News

New home sales in October unexpectedly rose to the highest level in a decade. Single-family home sales rose by 6.2% over September, the highest since October 2007.

Home prices rose in September 6.2% over last year and are expected to continue to increase. Prices are rising at the fastest annual rate since June 2014.

Pending home sales jumped by 3.5% in October. Led by the hurricane stricken south, the growth was more than double what was expected.

November 16, 2017

The Economy

The Producer Price Index, which measures wholesale inflation, rose 0.4% in October. Core PPI was also up, supporting a Fed rate increase next month.

Retail sales were also improved in October, coming in stronger than expected. The increase of 0.2% signals a growing economy and could pressure rates.

Tax reform continues to make progress in both chambers of Congress. Once passed, the reform is expected to spur further economic growth.

Housing News

Homebuilder confidence hit an 8-month high in November, despite increased costs and labor shortages. Buyer demand remains high on reduced inventory. National mortgage delinquency rates continue to fall, down 0.6% year-over-year in August. Foreclosure inventory was also down 0.3% year-over-year. Due to the shortage of inventory, especially in North Texas, the Dallas/Fort Worth real estate market has become very competitive for buyers. We offer a number of mortgage options for DFW buyers, and are experienced in loans that might be considered difficult for larger lenders, such as self-employed mortgage loans, or certain types of disabled veteran home loans.

The House passed legislation to extend the National Flood Insurance Program for 5 years. However, the Senate still must approve the bill for it to take effect.

November 9, 2017

The Economy

Traders continue to drive stocks to new heights and new records. However, concerns over the new tax reform plan going through have started to surface. The tax plan is expected to drive economic growth and corporate profits. If the plan doesn’t go through as anticipated, it could help interest rates.

The labor market remains strong. Job openings posted by employers in September were steady from the prior month, a near record high.

Housing News

Rents have been increasing far faster than the pace of inflation. However, rising homeownership numbers could curb demand, slowing the increases. New applications for purchase mortgages increased 1% last week. That’s 9% higher year-over-year, as buyers seem less concerned about rates.

The tax reform plan, as proposed, would lower the mortgage deduction on new purchases. There are lots of opinions of what effect, in any, it would have on sales.

November 2, 2017

The Economy

The Fed announced at this week’s meeting that there would be no policy rate hike this month. They did however signal a December hike is very likely.

Markets have been rallying on the probable nomination of Jerome Powell as the next Fed Chair. Powell is expected to continue the trend of current Fed policies.

The tax reform proposals issued by the House GOP have sparked a stock rally. A proposed cut to corporate taxes is expected to fuel the economy.

Housing News

Home prices hit a new all-time high in August, according to Case-Shiller. National home prices rose 6.1% annually, better than the 5.8% economists expected.

Construction spending increased 2.0% year-over-year in September. Month-over-month spending fell for non-residential construction while residential construction remained flat. Despite tight inventory and rising home prices, the homeownership rate rose in the 3rd quarter. The 63.9% rate is the highest level since 2014.

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: November Markets in a Minute