September Markets in a Minute

September Markets in a Minute

September 6, 2018

The Economy

Trade issues continue to help keep mortgage rates low. Talks continue between the U.S. and Canada, but tensions are escalating between the U.S. and China.

The White House Concil of Economic Advisers says wages are growing faster than "traditional measures" indicate. Wage inflation can contribute to rising interest rates.

Last week, jobless claims fell to a 49-year low as private payrolls rose in August. The sustained labor market strength should continue to drive economic growth.

Housing News

CoreLogic's Home Price Index report for July shows home prices across the U.S. rose by 6.2% year-over-year. However, home price increases are decelerating.

A recent Harvard Business School study reveals the "Starbucks Effect" on home prices. The authors say a new Starbucks raises prices by 0.5% in a ZIP code.

A Redfin survey shows recent increases in mortgage rates aren't scaring away buyers. Only 2.6% had decided to postpone their search.

September 13, 2018

The Economy

Trade tensions with China continue to help keep mortgage rates low. Although more talks are expected, new tariffs could be imposed any time.

Overseas central banks kept rates unchanged this week. Since many oversease unvestors buy U.S. Treasuries and bonds, this helps keep rates low.

The Fed meets next week for their Federal Open Market Committee meeting. They are expected to raise policy rates, but mortgage rates should be unaffected.

Housing News

Homes for sale are not lingering on the market for long. Propertiese typically sold in 27 days, shorter than the 30-day median from a year ago.

Less time on market suggests that we are still very much in a seller's market, and continues to reinforce the importance of pre-approval for homebuyers. If you're looking to purchase a home in the near future, you should get pre-approved and avoid the risk of missing out on your dream home. We offer a number of loan options, including VA home loans, first-time buyer loans, and self-employed home loans. If you're looking for an experienced Dallas/Fort Worth mortgage lender, give us a call to discuss loan options.

Although mortgage rates have moved up a bit, mortgage purchase applications were actually up 1% over the previous week and were up 4% over last year.

Younger Americans are waiting longer to get married, according to CNBC. However, marrying later means they could have more money for home buying.

The strategy of waiting to purchase a home until a little later in life can be great for younger buyers. In addition to saving more money for a down-payment, most first-time homebuyers may qualify for first-time homebyer assistance.

September 20, 2018

The Economy

Mortgage rates crept up this week to the highest levels since May. Market indications and analysis suggest they will not fall any time soon.

Consumer sentiment rose to a 17-year high last week. Confidence improved as consumers grow more optimistic about the economy and their personal finances.

The labor market also continues to show strength and is considered at or near full employment. Unemployment filins for last week fell to a near 49-year low.

Housing News

Home builder sentiment rose unexpectedly in September to its strongest level in 11 months, prompted by renewed interest in purchases following a summer lull.

Housing starts rose in August, boosted by a jump in multifamily construction and a rise in single-family homebuilding. Building permits, however, fell slightly.

Existing home sales were unchanged in August, following 4 months or declines. Supply continues to be an issue, although demand remains strong.

September 27, 2018

The Economy

The Fed met this week and raised policy rates 0.25%. This rate increase did not cause mortgage rates to rise though, as they are not tied directly together.

The Fed is expected to hike policy rates again in December and 3 more times in 2019. Strong employment and increaeing inflation would support these hikes.

Unemployment filings were up last week, mainly due to states hit by Hurricane Florence. However, the national figure remains near a five decade low

Housing News

Home prices are still rising, albeit at a slower pace. Case-Shiller shows prices rose 6% annually in July, down from 6.2% in June.

Pending home sales were down slightly in August for the 4th month. Tight inventory, rising rates and increased prices are being blamed for hampering sales.

New home sales rebounded in August after 2 months of declines. However, rising borrowing costs and increasing home prices could temper further improvement.

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: September Markets in a Minute