Mortgage Watch July 21, 2019

To find out if now is the time to buy, check out this week’s mortgage highlights:

  • Mortgage rates experienced some volatility last week when one of the Fed Bank Presidents made a statement that the market interpreted as indicating that a 50 basis point cut in the Fed Funds rate was likely at next week’s meeting of the Federal Reserve.
  • The statement was walked back, and rates trended back downward, apparently disappointed by the likelihood of a less stimulus coming.
  • Most of the week’s data pointed to an economy that was in good, but not great shape. Retail Sales increased another 0.4%, but Industrial Production remained flat, and the LEI slipped by 0.3%.
  • With the most important economic data point of the week not coming until Friday, rates may wobble around as markets debate what the Fed will do next week. Most analysts are expecting a quarter-point rate cut, but there is an argument for not moving rates – unemployment is high, inflation is low, and the economy is growing.
  • If Friday’s release of the 2nd quarter GDP comes in under 1.6%, then the Fed is very likely to cut the Fed Funds rate, and mortgage rates may move slightly downward.
  • Click here to search the latest homes on the real estate market this week. Is now the time to buy? Yes! With low rates, now is the time to get a deal on your dream home.

Biggest Vacation Home Percentage Where?

When people think of buying a vacation home, many often think about the big vacation destination states like Florida, California, or Colorado. An interesting study from IPX analyzed data from more than 29,000 census-designated locations across all 50 states to identify the states with the highest percentages of vacation properties. Maine, Vermont, and New Hampshire had the largest percentages but 100% of the homes in McCarthy, AK are vacation homes!