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