Mortgage Watch

This Week Highlights the Following Updates:

  • During a week of mixed economic data, mortgage rates managed to slip slightly downward. The most significant factor pushing rates down last week was the escalating trade war with China.
  • Stocks fell which drove some additional funds into bond markets, helping push interest rates on most products downward, especially early in the week.
  • Both Retail Sales and Industrial Production slipped into negative reading, but Leading Economic Indicators and Housing Starts both picked up.
  • While most experts agree that the recent tariffs will dampen economic growth and increase consumer prices on some products, the recent slowdown in inflationary pressure gives the Federal Reserve some additional breathing room before raising rates again due to increasing price pressures.
  • This week is a bit lighter in terms of economic data, so we could see another week with concerns over trade disputes keeping the market on edge.
  • Mortgage rates are unlikely to rise much without some surprise news that would provide markets with hopes of economic growth accelerating.

How About an Extra $10K in Your Pocket?

According to research released by the National Association of Realtors, a typical homeowner pocketed about $9,500 in equity gain over the last year. In the first quarter of this year, the median home price in the United States was $254,800. For the same period in 2018, it was $245,300. Even with incomes rising, NAR reports that housing affordability is decreasing, and more affordable areas may begin to see population growth as people seek more affordable housing.