For the Week Ending August 18, 2017
Please enjoy this quick update on what’s happening this week in the housing and financial markets.
- 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.