For the Week Ending October 20, 2017
Please enjoy this quick update on what’s happening this week in the housing and financial markets.
- Recently released economic data shows the economy is growing, but inflation is still not a problem. Rising inflation pressures mortgage rates to move higher.
- The Fed is expected to leave policy rates unchanged at this month’s meeting but raise them at December’s meeting, despite lack of inflation.
- Unemployment benefit claims fell to a 44-year low last week. This points to a rebound in job growth after a hurricane-related decline in September.
- Builder confidence in the housing market rose to a 5-month high in October. However, builders still face increased material costs and labor shortages.
- Housing starts were at a 1-year low in September, due to hurricanes disrupting construction. The storms are also blamed for a decline in building permits.
- Housing market fundamentals, however, remain solid. Mortgage applications for home purchases were up 4% week-over-week, despite the holiday week.
My first job was being a diesel fitter at a pantyhose factory. As they came off the line, I would hold them up and say, “Yeah, deez-el fit her.”
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.