Market News 10-26-18
This week’s stock rout drove some traders to seek safety in bonds, causing mortgage bonds to perform well and helping to stabilize rates. Orders to U.S. factories for big-ticket manufactured goods slowed in September. However, they were still up 0.8% from August, pointing to economic growth. Although new applications for unemployment aid rose last week, the number of people receiving benefits fell to a 45-year low, signaling labor market tightening.
New home sales dropped 5.5% to a near 2-year low in September. However, numbers were likely affected by Hurricane Florence and could be skewed. September’s pending home sales were slightly lower than a year ago but were up 0.5% over August. Affordability continues to weigh on buyers. Mortgage applications rose 4.9% from the previous week. Purchase apps rose 2% for the week and were basically flat compared to a year ago.
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