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Michael Creed

Markets in a Minute | 11/20/2015

For the Week Ending November 20, 2015
 

Please enjoy this quick update on what happened this week in the housing and financial markets.

Fed minutes show that members think the economy can handle a policy rate increase. Over 70% of economists now think the Fed will hike rates in December.
Markets have already started preparing for a Fed policy rate increase in December, contributing to recent mortgage rate increases.
Weakness in retail sales and producer prices make it unlikely that inflation will rise significantly. Low inflation can help mitigate a trend toward rising rates.

Housing starts were down in October due to a decline in apartment construction. Overall though, the trend in housing starts has been steadily improving.
Highlighting the housing market’s strength, building permits were up 4.1%. Permit activity portends more supply and healthy construction spending.
Homebuilders continue to remain upbeat about the market and outlook for real estate. Strong demand and limited inventory make new homes essential.

“Thanksgiving is an emotional holiday. People travel thousands of miles to be with people they only see once a year…and then discover once a year is way too often.”

– Johnny Carson

 

Please note: We will not publish The Markets in a Minute next week. Wishing you a wonderful Thanksgiving Day!

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 | November 13, 2015

For the Week Ending November 13, 2015
 

Please enjoy this quick update on what happened this week in the housing and financial markets.

October’s jobs report supports speculation the Fed will raise policy rates at the December FOMC meeting. Unemployment improved and job growth surged.
Steady jobless claims this week were further evidence of a healthy labor market and the growing likelihood of the long anticipated Fed policy action.
Mortgage rate markets are already moving in advance of the December Fed meeting. Increases so far are small and can actually motivate buyers to action.

Encouraging potential buyers to move off the fence, rents are increasing in all price brackets. Rents rose an average of 6.2% year-over-year.
A 12% rise in foreclosures in October is attributed to lenders acting before the holiday moratoriums. Foreclosures have been declining steadily for several years.
Purchase mortgage applications appeared unfazed by the recent climb in rates, improving .1% week-to-week. That’s an 18% increase over this week last year.

I’ve taken up speed reading. I can read “War and Peace” in twenty seconds. It’s only three words, but it’s a start.

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.