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Markets in a Minute

Markets in a Minute | December 15, 2017

 

 

Tax reform is moving forward. Lawmakers are currently reconciling the Senate and House versions. The GOP is trying to get it done before 2018.
The Fed raised policy rates at this week’s meeting, as expected. The rate increase actually helps to keep mortgage rates low for the near term.
The Fed is expected to raise rates 3 times in 2018, based on current forecasts. The policy rate increases could pressure mortgage rates higher for next year.

 

Homebuilders that focus on entry-level housing are expected to flourish in 2018. A growing economy, solid job market, and low mortgage rates are driving demand.
In its 2018 forecast, Realtor.com predicts home prices will go up 3.2% and sales will increase 2.5%. Inventory is also expected to rise.
Mortgage rates remain low, and mortgage applications remain high. New purchase apps were 10% higher than a year ago this time.

 

Sister: “What are you giving Mom and Dad for Christmas?”

Brother: “A list of everything I want!”

 

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 | December 7, 2017

 

The Fed will meet next week for the final FOMC meeting under Fed Chair Janet Yellen. Jerome Powell has been approved by Congress to take over in 2018.
Jobless claims declined for the 3rd straight week. A strong labor market could support a Fed policy rate increase at next week’s meeting.
The tax reform that is fast-tracking its way through Congress is fueling stocks. The expected economic growth from the plan could push rates higher in 2018.

 

The proposed tax reform plan would cut the mortgage interest deduction on new purchases. However, economists don’t think it will have any effect on the housing market.
Millennials now make up the largest segment of new home buyers. They are buying the greatest share of starter homes and low-to-mid tier homes as well.
Construction spending hit a record high in October. Private residential spending rose 11.2% year-to-date, with new single-family construction up 9%.

 

 

I bought my friend an elephant for his room.

He said, “Thanks.”

I said, “Don’t mention it.”

 

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.