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Markets in a Minute – May 8, 2015

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For the Week Ending May 8, 2015

Bond markets around the world, including the U.S., are selling off in a global bond rout. This bond sell-off is a factor in the sudden increase in mortgage rates.
The Fed is expected to view weak Q1 data as temporary and to dismiss it. That makes them likely to raise policy rates sooner if they see economic improvement.
Oil prices have rebounded toward 2015 highs despite ample supply. Higher oil prices are inflationary and can contribute to higher mortgage rates.

Higher rates haven’t slowed purchase demand, as demonstrated by increased mortgage applications. Refinance applications, however, dropped dramatically.
Home prices increased in March for the 37th consecutive month on a year-over-year basis. Nationwide home prices are now within 10% of their pre-crash peaks.
Residential real estate investors are also struggling to find lower priced inventory. There are 63% more investors looking at $200,000+ houses this year than in 2014.

Why did the scarecrow get a raise?

He was outstanding in his field!

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.

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