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Markets in a Minute

Markets in a Minute | May 12, 2017

For the Week Ending May 12, 2017
 

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

 

Inflation at the wholesale level, before it reaches the consumer, rose 0.5% in April and is up 2.5% for the last 12 months. Inflation pressures rates to go higher.
The Fed is expected to raise policy rates at their June FOMC meeting. Raising rates will help keep rising inflation in check at the Fed’s target of 2%.
There’s speculation that the Fed may also raise policy rates again in September. Mortgage rates may be pressured higher now as traders prepare for the hike.

 

Fannie Mae’s Home Purchase Sentiment Index rose 2.2% in April. Five of six components that measure confidence in buying were up for the month.
Forty-nine percent of those that don’t yet own a home expect to purchase in the next 5 years. Ten percent say they plan to buy as soon as the next year.
Mortgage applications were up last week, with home buyers fueling the increase. Total applications for loans rose 2.4%, showing strong demand continues.

 

Sometimes I tuck my knees into my chest and lean forward. That’s just how I roll.

 

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 | May 5, 2017

For the Week Ending May 5, 2017
 

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

 

 

The Fed left rates unchanged at May’s FOMC meeting but expressed faith in the strength of the economy. Markets now anticipate a June increase to be likely.
Recent jobs data supports the view of a strong labor market. Unemployment hit a 17-year low, and a tightening labor market could support a Fed rate increase.
Manufacturing, which accounts for about 12% of the economy, continues to recover. Factory orders were up 5.2% from a year ago.

 

A strong housing market has NAR raising their forecasts. Existing home sales are now expected to rise by 3.5%, and home prices likely will increase 5% this year.
Housing starts have been in gradual recovery mode the last few years. In 2016, starts were at 1.23 million units.
Homes with a view can sure fetch a premium. Some cities like NY and San Francisco boast a price increase of 39% to over 200% for properties with a view.

 

I got fired at work today. My boss said my communication skills were awful.

I didn’t know what to say to that.

 

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.