This Week Highlights the Following Updates:
- Stock markets suffered another challenging week as analysts work to predict both the timing and depth of the next recession.
- While it appears that the economy has plenty of steam for the near term, more experts see the potential of a slowing economy late next year or in 2020.
- National mortgage rate surveys revealed a dip in mortgage rates, last week.
- However, with expectations still high for a rate increase from the Fed next month, we are unlikely to see rates go much lower. Rates are more likely to move upward as we get closer to the Fed meeting.
- The housing market got some good news last week with Existing Home Sales moving upward for the first time in six months.
- The LEI posted a 0.1% increase, but Orders for Durable Goods posted a 4.4% decline. This week’s significant economic data will be focused primarily on Consumer Confidence and the GDP report.
- If Confidence remains unchanged and GDP is adjusted over 3.7%, then mortgage rates are very likely to bounce back up slightly more than they dropped during the last two weeks.
Hints of Déjà vu in Home Appraisals
The Federal Housing Administration is anticipating loses of over $14 billion in the next few years. Much of this may be attributed to one of the major factors in the 2008 housing market collapse – inflated home appraisals. The FHA has identified reverse mortgages as one of the significant areas where appraisal problems exist. A major review of FHA mortgages found that at least 37% of FHA mortgages had appraisals more than 3% over the likely value of the home.