First Team’s Weekly Mortgage Watch (July 8th, 2018) This Week Highlights the Following Updates:
- Last week brought a flurry of good economic news. The ISM Manufacturing Index charged upward to 60.2, only the second time in 14 years that the index has gone over 60. Its sister services index also stepped upward to 59.1.
- The monthly employment report saw some 600K workers move off the sidelines and begin looking for work, which increased the unemployment rate to 4.0%. However, 213,000 new jobs were created last month.
- The minutes from the Fed’s last meeting revealed a Fed likely to continue to increase interest rates into 2019.
- Generally, all of this would result in higher rates, yet mortgage rates seem to be stuck in neutral.
- The reality is that we are in one of the longest economic expansions in US history. How long this can last is anyone’s guess, but some experts are beginning to talk about when and why we’ll see the next economic downturn begin.
- This week will be focused primarily on inflationary data. The more that we see, the more rates are likely to rise. If trade war rhetoric heats back up, we might see rates remaining about where they are.
A Deal’s a Deal Unless It Has Bump Clause?
More real estate transactions are showing up with a twist on the deal. A bump clause allows a seller to continue to market a property after signing a contract. If they receive an offer before closing, they can take the better offer or let a buyer remove contingencies from the original contract. Some experts believe that these clauses are appearing more in markets where sellers have yet to adjust to slower times to sell a home or to get buyers to skip adding contingencies.