First Team’s Weekly Mortgage Watch (July 1st, 2018) This Week Highlights the Following Updates:
- Mortgage rates remained mostly flat last week, with economic data that reinforced the idea that we continue forward with slow, solid growth.
- Consumer Confidence slid backward but remained in positive territory. New Home Sales stepped upward, but overall construction continues to be below what most experts believe would be “normal activity.”
- GDP for the first quarter was adjusted down to 2.0%, and inflationary data continues to remain around the Fed’s so-called “speed limit.”
- This week starts with the ISM Manufacturing Index. While it and its sister services index are expected to take a small step downward, they both will remain at a level considered solid growth.
- Minutes from the last Fed meeting are also due, and analysts may be more sensitive to indications of slowing growth, which would press rates downward.
- The monthly employment data is also released, and with unemployment at 3.8%, we’re likely to hear more chatter about how that indicator may not be as reflective of the employment situation as the economics of modern labor have morphed.
You’ll Never Know Without Getting Expert Help
A recent survey by Rent Café revealed that 83% of renters are living in what they consider a “less than ideal” location. While most renters indicate that moving to a more ideal home would cost more than four times what they are willing to pay, few look at creative options for buying a home in a more desirable area. Given the low level of understanding regarding down payment and financing options, renters may be able to buy rather than continue to rent.