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FIRST TEAM’S WEEKLY MORTGAGE WATCH (August 6th, 2017) THIS WEEK HIGHLIGHTS THE FOLLOWING UPDATES:
- Mortgage rates seem to have shifted into neutral, as the economy continues to plod along in the same vein as it has for many years.
- Last week, the monthly employment report revealed another plus-200K story of new jobs created.
- Balancing that was decreases in both the ISM indices. While both remain on the “expansive” side of the equation, neither services nor manufacturing are able to significantly accelerate.
- With domestic activity appearing constrained, we may get an economic boost from overseas. If some of our trading partners’ economies continue to grow, our exports should pick up. This would result in net increase to our GDP, and ultimately should help improve our economy.
- Jobs and inflation will be highlighted in economic reports this week, and no significant change is expected.
- While the improving labor market should be generating some wage-driven inflation, its impact has been negligible in this recovery. Of course, the lack of inflationary pressure, coupled with even modest economic growth, continues to give the Fed plenty of time to ponder each move.
Forget The Spouse; I’m Buying For The Dog!
A recent survey from Suntrust Mortgage explored factors that motivated millennials to purchase a home. Historically, marriage and children have been two of the largest factors, but that is changing. The number one reason, with 66% of respondents citing, was “more living space.” Only 25% cited marriage, while 19% cited birth of a child. Ahead of both those influences was 33% who cited needing a better space or a yard for their furry, four-legged friend.