July Markets in a Minute

July Markets in a Minute

July 5, 2018

The Economy

Manufacturing activity surged in June, as companies accelerated production in advance of expected tariffs.

Stocks continue to suffer as concerns remain about the effect of tariffs on trading. Apprehension about a trade war isn't helping mortgage rates much either.

The labor market appears to be near full strength, even as weekly jobless claims were up last week. The jobless rate is at an 18-year low of 3.8%.

Housing News

Overall construction spending was up 4.5% year-over-year in June and 0.4% over May. For residential constructon, spending was up 0.8%.

Single-family home construction spending was up 8.2% in June over the previous year. Multi-family housing spending was also up 4.2% year-over-year.

Millenials really do want to be homeowners. In a recent survey, 36% of the 500 respondents reported taking a second job to save for a down payment.

First-time homebuyers need to make sure they have an experienced mortgage team in place that is committed to finding them the best motgage options. The Jeff Kramer Team specializes in getting Dallas/Fort Worth first-time homebuyers approved, and will help you find available resources, including first-time homebuyer assistance for qualified buyers.

July 12, 2018

The Economy

Consumer prices barely rose in June, but the underlying trend points to inflation. Rising inflation will likely lead to more Fed rate increases and higher rates.

Producer prices rose more than expected in June, another factor pointing to inflation. This jump was the largest annual increase in 6 1/2 years.

Although trade war concerns have escalated, there's not a lot of fear that this will hurt the economy. In the meantime, mortgage rates have remained stable.

Housing News

Homeowners have an estimated $5.8 trillion in accessible equity, the highest ever recorded. Despite this, fewer owners are taking cash out than in previous eras.

If you've been considering a cash-out refinance for your Dallas/Fort Worth home, contact us today for details and to learn how quick and easy the process can be.

Inventory remains tight, but could loosen up a bit in the near future. Inventory increased 12.2% in the 2nd quarter, the biggest gain since early 2015.

Although refinance applications were down last week, purchase applications rose 7% for the week and were 8% higher than the same week a year ago.

July 19, 2018

The Economy

Retail sales rose for a fifth straight month in June. A tight labor market and lower taxes have supported solid gains in household purchases.

Investors say the economy has plenty of steam despite bond market and trade fears. A flattening bond yield curve has caused concern in some circles.

The number of filings for unemployment benefits fell last week, hitting its lowest level in more than 48 1/2 years. The labor market continues to strengthen.

Housing News

As expected, the National Association of Home Builders (NAHB) Housing Market Index remained at 68 this month. The reading indicates a strong level of builder confidence in the new home market.

Inventory shortages have extended to land shortages as well. Homebuilding fell to a nine-month low in June, and permits declined for a third straight month.

While permits to build single-family homes rose 0.8% in June, they trailed starts, suggesting moderate gains in single-family homebuilding in the months ahead.

July 26, 2018

The Economy

Talk of tariffs and trade concerns continue to help keep mortgage rates low. However, the strong economy and labor market could pressure rates higher.

Recent comments by President Trump about raising rates are not likely to affect the Fed's plans. One or even two policy rate increases are still expected for 2018.

The European Central Bank is seeing inflation increase overseas and should end economic stimulus this year. This could pressure future mortgage rates higher.

Housing News

Existing home sales continued to slide in June, to a 5-month low. A persistent shortage of properties on the market drove house prices to a record high.

New home sales also dropped to an 8-month low in June. Demand remains high, but builders are struggling with labor shortages and material costs.

Fifteen more states can now accomodate fully digital home closings. A total of 265 million homebuyers can now enjoy fully online closing processes across the country.

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: July Markets in a Minute