Please enjoy this quick update on what happened this week in the housing and financial markets.
- Recent comments by Fed Chair Jerome Powell have markets questioning if we’ll see policy rate increases in 2019, which could be good for mortgage rates.
- Consumer spending increased by the most in 7 months in October. But underlying price pressures slowed, meaning inflation is less of a concern.
- The economy grew 3.5% in the 3rd quarter, lower than the 2nd quarter’s 4.2%expansion. Still, corporate profits reached a 6-year high.
- Despite moderation, September’s annual home price gains remain strong at 5.5%, as reported by Case-Shiller.
- October’s pending home sales dropped 2.6% from the previous month. Sales were down 6.7% compared with October 2017, for the 10th month of annual declines.
- New home sales also fell in October. However, data last week showed an increase in building activity. A larger supply of available homes could bring more sales.
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.
SOURCE: On Q Financial