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Michael Creed

Markets in a Minute | August 25, 2017

For the Week Ending August 25, 2017
Please enjoy this quick update on what happened this week in the housing and financial markets.

 

 

Central bankers from around the world are meeting this week for the Jackson Hole Symposium. Markets will be looking for signs of imminent policy changes.
Very little economic news this week along with low trading volume has left markets quiet. This environment has helped to keep mortgage rates stable.
Despite labor market strength, low inflation remains a concern. Speculation is the Fed cannot raise rates again this year unless inflation rises to around 2%.

 

New home sales were unexpectedly lower for July, down 9.4% from June. July’s sales were a 7-month low and caused some concerns about the housing market.
However, before anyone panics, it should be noted that May and June numbers were revised higher. Median new home prices were up 6.3% over last year.
Inventory of new homes rose 1.5% last month, the highest level since June 2009. Even still, a shortage of new and existing home inventory remains an issue.

 

Heard at the end of a recent flight:
“Please be sure to take all of your belongings. If you do leave anything, please be sure it’s something we’d like to have.”

 

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 | August 18, 2017

For the Week Ending August 18, 2017

 

 

In July, retail sales recorded their biggest increase in 7 months. Consumer spending rose at a 2.8% annualized rate in the second quarter.
Regardless of the strong data, inflation continues to be soft, a concern to Fed members. Weak inflation supports low rates, including mortgage rates.
Minutes released from the Fed’s last FOMC meeting show members are concerned about the lack of inflation, making a near-term rate increase unlikely.

 

Rising demand for new homes drives builder confidence. Homebuilder sentiment rose 4 points to 68 in August, its highest level since May.
Although demand was higher, construction of new homes fell 4.8% in July. Building permit numbers were also down, as labor and material prices increase.
Home prices keep rising. Median prices in the 2nd quarter eclipsed a record high set in 2016. Prices for single family homes rose in 87% of national markets.

 

My friend said to me, “What rhymes with orange?”

I said, “No it doesn’t.”

 

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.