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.

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