June Markets in a Minute

June Markets in a Minute

June 7, 2018

The economy

June's Federal Open Market Committee (FOMC) meeting is next Wednesday. The Fed is widely expected to raise policy rates by 0.250% at this meeting.

Mortgage rates have already factored in a Fed rate increase. However, rates are creeping up after geopolitical tensions in Italy have dissipated.

The European Central Bank also meets next week. If the ECB announces plans to reduce stimulus, rates could be pressured slightly higher.

Housing news

Volatility in mortgage rates from geopolitical tensions helped push rates lower last week. Mortgage purchase applications rose 4.1% week-over-week

Freddie Mac reports that 46% of first-quarter purchase mortgages were to first-time buyers. This marks the largest share recorded, dating back to 2012.

If you're looking for the best loans for first-time homebuyers, give the Jeff Kramer Team a call at (972) 930-5922, and let us help you buy your dream home.

Homes in lower price ranges are appreciating faster than more expensive homes. Prices rose 9.3% year-over-year for homes priced 75% or less of the median.

June 14, 2018

The economy

As expected, the Fed raised policy rates a quarter percent at this week's meeting. The increase will likely have little impact on long-term mortgage rates.

The surprise came with the Fed's statement that two more rate hikes are likely this year. That's one more than initially projected.

Strong economic indicators support the rate changes. Jobless claims dropped 4k from last week, and last month's retail sales were higher than anticipated.

Housing news

Median priced homes are flying off the shelves, so to speak. A recent industry analysis pinpointed the median listed-to-sale time frame at 64 days, a post-recession low.

A recent Fannie Mae surver found sellers more positive than buyers. Price increases paired with rising rates are tempering buyer attitudes.

CoreLogic reports the average U.S. homeowner gained $16,300 in home equity over the last year. Increaed equity gives owners more flexibility in selling and financing.

If you've been in your Dallas/Fort Worth home for a while, you may consider a cash-out refinance to take advantage of your home equity. We specialize in finding homeowners the perfect loan options for their situations, including refinance options and cash-out refinance.

June 21, 2018

The economy

Tariffs imposed by President Trump have elicited retaliation from countries around the globe. Concerns about a trade war have helped mortgage rates.

Fed Chair Powell recently confirmed the case for continuing to raise interest rates remains "strong." He cited solid economic growth and full employment.

Jobless claims have falled for the 4th straight week. Employers are increasingly reporting labor shortages, which are likely to lead to wage growth and inflation.

Housing news

Home builders are excited by strong demand for housing. However, they are frustrated with labor shortages and rising costs for lumber.

New housing starts surged to an 11-year high of 1.35 million in May. Both single-family and multi-family home construction increased.

Existing home sales fell last month, as a shortage of properties pushed prices to a record high. At May's sales pace, unsold inventory is at a 4.1-month supply.

June 28, 2018

The economy

Consumer confidence was down slightly in June, suggesting economic growth may temper a bit. Economists said trade dispute concerns were to blams.

Some economists even think that escalation of trade tensions could tip the economy into recession. However, the Fed doesn't seem too concerned yet.

The economy did slow more than previously estimated in the first quarter of 2018. But growth appears to have accelerated again on the back of a strong labor market.

Housing news

New home sales climbed 6.7% in May, led by sales in the South. New home sales have risen 8.8% for the first 5 months of 2018.

Home values continue to rise, but at a slightly slower pace than we've seen recently. In April, values tracked at 6.4% annually, down from 6.5% in March.

Pending home sales slipped, falling for the 5th straight month in May. Tight inventory continues to get the blame.

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: June Markets in a Minute