Market News 9-28-2018
The Fed met this week and raised policy rates 0.25%. This rate increase did not cause mortgage rates to rise though, as they are not tied directly together. The Fed is expected to hike policy rates again in December and 3 more times in 2019. Strong employment and increasing inflation would support these hikes. Unemployment filings were up last week, mainly due to states hit by Hurricane Florence. However, the national figure remains near a five decade low.
Home prices are still rising, albeit at a slower pace. Case-Shiller shows prices rose 6% annually in July, down from 6.2% in June. Pending home sales were down slightly in August for the 4th month. Tight inventory, rising rates and increased prices are being blamed for hampering sales. New home sales rebounded in August after 2 months of declines. However, rising borrowing costs and increasing home prices could temper further improvement.
|Year-to-Date Rate Tracking|