October Markets in a Minute

October Markets in a Minute

October 26, 2017

The Economy

Stocks continue to hit new highs, driven by optimism over new tax regulations and a spurred economy. The rally is putting pressure on rates to move higher.

The European Central Bank is extending their economic stimulus into 2018 but will reduce the amounts. Overall the news was positive for bonds and rates.

The Fed will meet next week for their FOMC meeting. It’s not likely they will raise policy rates next week, but they are expected to do so at the December meeting.

Housing News

New home sales surged 18.9% in September to the highest level in 10 years. This was a nice recovery after unexpectedly falling 3.4% in August.

Pending home sales were flat in September though, as demand continued to exceed supply. There are some concerns that winter will further reduce inventory. As these concerns continue into 2018, Realtors and lenders are recommending that all potential homebuyers get pre-approved for a residential mortgage. We offer a variety of mortgage options to Dallas/Fort Worth area buyers, including loans for veterans and first-time homebuyers. Get pre-approved today by filling out an online mortgage application.

Mortgage applications for home purchases were down last week. Economists say rates likely had less to do with the drop than the shortage of homes for sale.

October 19, 2017

The Economy

Recently released economic data shows the economy is growing, but inflation is still not a problem. Rising inflation pressures mortgage rates to move higher.

The Fed is expected to leave policy rates unchanged at this month’s meeting but raise them at December’s meeting, despite lack of inflation.

Unemployment benefit claims fell to a 44-year low last week. This points to a rebound in job growth after a hurricane-related decline in September.

Housing News

Builder confidence in the housing market rose to a 5-month high in October. However, builders still increased material costs and labor shortages. Housing starts were at a 1-year low in September, due to hurricanes disrupting construction. The storms are also blamed for a decline in building permits.

Housing market fundamentals, however, remain solid. Mortgage applications for home purchases were up 4% week-over-week, despite the holiday week.

October 12, 2017

The Economy

The minutes releases from last month’s Fed meeting showed some members don’t agree that low inflation is transitory. Low inflation helps keep rates low. However, it’s still expected that the Fed will leave rates unchanged in October and November, but will hike policy rates in December. There’s an 88% probability at the moment.

Producer prices rose in September as gasoline prices jumped. Jobless claims dropped to a one-month low, showing strength in the labor market.

Housing News

Natural disasters continue to reduce inventory in already tight markets. An estimated 9.1 million homes are at risk in Napa and Sonoma counties in California.

The buzz about net-zero homes continues to build. These highly energy efficient homes produce as much or more energy as they consumer for heating and cooling.

The numbers of unfilled jobs in construction continued to rise in Auguest to the highest level since February 2007. Homebuilders added over 80,000 jobs in the last year.

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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