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FIRST TEAM’S WEEKLY MORTGAGE WATCH (April 16th, 2017) THIS WEEK HIGHLIGHTS THE FOLLOWING UPDATES:
- Average mortgage rates wobbled downward last week, touching their lowest point of 2017. Both economic data and international drama contributed to the slide.
- Retail Sales slipped a bit more than expected, dropping 0.3%.
- Inflationary pressure reined back for the most part, with the core CPI decreasing for the first time in seven years.
- Internationally, the drama playing out in the Middle East, along with Iran and Russia’s involvement, coupled with the heightened tensions in North Korea, seems to have made markets a bit more uncertain than they were just a few weeks ago.
- This week could see rates continuing to trend slowly downward again. Any additional drama from outside the United States would put more downward pressure on interest rates across the board.
- The biggest economic data point due this week is Industrial Production. If it comes in flat or declines, then rates will likely move downward.
- We’ll also get more insight into the housing market with Starts and Existing Home Sales. Positive news in housing could help rates from falling very much.
Deed or Sell The Home To Your Kids?
As retirement approaches, many parents think about giving their home to their children as they move. However, that may not be a great idea, as one could end up facing a large tax bill. Additionally, the child may need to calculate any capital gains based on the original price that one paid for the home. Experts recommend that before deeding one’s home to a relative that one gets sound tax and financial advice to understand what may happen for everyone involved.