Trade issues continue to help keep mortgage rates low. Talks continue between the U.S. and Canada, but tensions are escalating between the U.S. and China. The White House Council of Economic Advisers says wages are growing faster than “traditional measures” indicate. Wage inflation can contribute to rising interest rates. Last week, jobless claims fell to a 49-year low as private payrolls rose in August. The sustained labor market strength should continue to drive economic growth.
CoreLogic’s Home Price Index report for July shows home prices across the U.S. rose by 6.2% year-over-year. However, home price increases are decelerating. A recent Harvard Business School study reveals the “Starbucks Effect” on home prices. The authors say a new Starbucks raises prices by 0.5% in a ZIP code. A Redfin survey shows recent increases in mortgage rates aren’t scaring away buyers. Only 2.6% had decided to postpone their search.
|Year-to-Date Rate Tracking|